The total share of the cryptocurrency market held by bitcoin has fallen to just over 50%. This has taken place as more cryptocurrencies grow to challenge bitcoin dominance as the world’s first major crypto asset.
Bitcoin Dominance Dips
For the first time in over seven months, bitcoin is now on the verge of dipping below the 50% mark. Once breached, BTC will no longer represents the majority of the total market cap of all cryptocurrencies.
The news comes at a time of increasing interest in alternative cryptocurrencies and their ecosystems. These days, a greater number of developers, merchants and consumers are broadening their horizons to interact with more cryptocurrencies.
At the time of press, the share stood at 50.9%, but had previously dropped to 50.54% earlier in the week. This contrasts starkly with a consistent over-70% market share throughout 2017.
The last time bitcoin fell below the 50% mark was in August 2018. But this time it’s not on account of any depreciation within bitcoin markets. Instead, the shift has been prompted by the increasing strength of the broader crypto sector.
Crypto Market Strengthening
In the last quarter, altcoins like Litecoin (LTC), Binance Coin (BNB) and enjin (ENJ) have all enjoyed strong price performance. Collectively they have helped shift the balance of dominance away from bitcoin and towards the wider market.
This has seen the total market cap of all cryptocurrencies grow by over 33% since February. At the time of press, that figure has risen from $51 billion to $69 billion.
Over the same period, the market cap of bitcoin has also risen. Albeit to a lesser degree, reflecting a still bold 20% increase on the period.
Some analysts have read the shift as a sign of investors changing their attitude towards the crypto sector, veering more towards riskier investments. During the height of the bear market, bitcoin had attracted the bulk of the crypto action. Investors at the time choose to stick to the most established ecosystem within the crypto space.
Investor sentiment has since shifted to a broader palette of digital assets. This could be a sign of a turning tide in the asset class.
The news comes amidst a strong day of trading for bitcoin. The crytpcurrency had crossed the landmark $4,000 level at the time of press.