MARKET BITCOIN

Is Altcoin Dominance Making a Comeback? Bitcoin Market Share Drops to Lowest Level Since June Last Year

2020/2/13

Bitcoin fell below the $10,000 mark in September last year, but unlike the bear market of 2018, Bitcoin has quickly corrected this year and continued to rise. Since January, it has risen by 41% and recently surpassed $10,400. However, competing coins such as Ethereum, Ethereum Classic (ETC), and Tezos (XTZ) have also shown signs of recovery, with returns outperforming Bitcoin. These signs have led many investors to anticipate the upcoming peak season for competing coins.

Table of Contents

Most Altcoins Outperform Bitcoin
The Survival of Altcoins Sparks Debate Again

Bitcoin Dominance Drops to 63%

While Bitcoin has been steadily rising since hitting a low of $6,800 in December last year, its dominance has been gradually decreasing as mainstream altcoins surge. Since the beginning of this year, its dominance has dropped by 7%, returning to levels seen in July last year.

Bitcoin Dominance Declining (source:coinmarketcap)

ABM previously reported that Bitcoin is approaching its third halving event. Cryptocurrency rating agency Weiss Ratings also believes that the halving is an important indicator of an incoming bull market. It is expected to propel Bitcoin easily above $20,000, with investors in top altcoins seeing higher returns.

Is Altcoins Season Coming?

With mainstream altcoins steadily rising, many cryptocurrency analysts are suggesting that an altcoin season is on the horizon. Arthur Hayes, the founder of derivative exchange BitMEX, also tweeted:

Is it shitcoin season?

Is it Shitcoin season? I hope your Blockfolio lit as fuck. pic.twitter.com/a2vsAyT9Lv
— Arthur Hayes (@CryptoHayes) February 12, 2020

In fact, the future of altcoins has long been a topic of debate within the crypto community. Legendary trader Peter Brandt believes that 99% of altcoins will eventually be phased out by the market.

However, as previously reported by ABM, the inventor of Proof of Stake, Sunny King, holds a different view and believes that Bitcoin's dominance will eventually be replaced. He stated:

In the long run, Bitcoin may not be able to maintain its current market share. For a healthy and thriving ecosystem, the base currency BTC is crucial, but only needs to occupy a small portion.

From a conservative perspective, Bitcoin's market dominance is still relatively high compared to the altcoin rally period in 2017. Therefore, investors anticipating an altcoin season may need to exercise patience.

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