As altcoins rally, BTC’s dominance falls to a yearly low of 62.5%
|- Bitcoin’s prices, trading volumes and volatility have been dwindling over the last couple of months.
- BTC’s market share appears to be eroded by the explosion in DeFi tokens in recent times.
- Experts are suggesting that decentralized finance may have just kick-started a new altcoin season.
Following the stock market, Bitcoin’s price fell to an intraday low of $9,050 on Friday. It managed to recover to $9,300 later but failed to break resistance there, dropping to around $9,200 on Saturday. This has kept BTC within its range-bound channel as the consolidation (began in May) resumes. Trading volumes and volatility are decreasing, indicating a more massive move ahead.
In addition to volatility, BTC’s dominance has also plummeted to a 12-month low, reaching 62.5%. According to Coinmarketcap, the last time BTC’s dominance was this low was approximately a year ago. In early May, when the DeFi boom started, Bitcoin’s dominance was around 70%.
Popular analyst CryptoFibonacci has spotted a prominent confluence area for Bitcoin dominance. If it falls any further, a significant trend line could be broken down.
$BTC Daily Dominance Chart.
— CryptoFibonacci (@CryptoFib) July 11, 2020
Will be interesting see what happens in the next few days or now.#BTC pic.twitter.com/UeIafO1AVO
$BTC Daily Dominance Chart.
— CryptoFibonacci (@CryptoFib) July 11, 2020
Will be interesting see what happens in the next few days or now.#BTC pic.twitter.com/UeIafO1AVO
He added that BTC dominance will not be going above 65% any time soon due to the quality of the up and coming altcoins.
Jack Prudy from Messari said that BTC has done absolutely nothing from May, after the halving event. He added that this was no different from the previous 2016 halving event. Over the past couple of months, BTC’s market share has been faltered by the explosion in decentralized finance tokens. The total value locked (TVL) across all DeFi markets has recently reached an all-time high of $2.26 billion.
In less than a month, DeFi TVL has spiked 114% as more than a $1 billion worth of cryptocurrencies have been pumped into the smart contract-based lending and borrowing ecosystem. On the other hand, crypto markets have only managed a 1.5% gain in total market capitalization in the same period.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.