As altcoins rally, BTC’s dominance falls to a yearly low of 62.5%

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. 

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.