The past few months have yielded some rather unexpected crypto market momentum. Despite Bitcoin inching closer to $12,000, the altcoin dominance is rising quickly. A parity between Bitcoin and altcoins is possible, albeit the gap will be difficult to overcome.
Bitcoin is Performing Decently
Contrary to what some people may expect, Bitcoin is performing pretty well in 2020. Even the world’s leading cryptocurrency saw a big price dip in March of this year, but recovered swiftly after. With the value currently approaching $12,000 again, there is some genuine excitement in the community. Reaching the $12,000 level has happened before, but it has been rejected by traders multiple times already.
More often than not, a rising Bitcoin price is beneficial to altcoins. All of these alternative assets benefit primarily from Bitcoin’s price momentum. That situation has come to change in recent months. Speaking of an “altcoin decoupling” is nonsense, but some momentum has been brewing. All of this has resulted in a continually declining Bitcoin Dominance rating.
More specifically, the Bitcoin Dominance index currently sits at just over 58.4% on CoinTrader. Depending on which data aggregator one uses, this figure may be slightly different. One thing is certain: Bitcoin is becoming less dominant. A positive trend overall, as cryptocurrency is about so much more than just BTC.
Altcoin Dominance Trend Remains Bullish
Looking at the other side of the spectrum, a lot has changed since mid-May 2020. From that point forward, the altcoin dominance has gone on a strong rise. After bottoming out at 31.25% in May, it now sits at 41.717%. A very steep increase, further highlighting the overall interest in alternative cryptocurrencies.
Part of this altcoin dominance trend is fueled by the growing DeFi popularity. It has been a very interesting industry to date. Dozens of tokens compete for traction. Trading of these tokens has also generated ample volume for the different exchanges. Another contributing factor is the upcoming launch of Ethereum 2.0. Many people are excited about this shift to proof-of-stake and sharding.
Increasing Altcoin Market Cap
It doesn’t happen all that often to see people look at the actual combined altcoin market cap. Adding up all of the individual values is a daunting task, with over 6,000 tokens and assets on the market. Tracking this market cap is not difficult, as CoinTrader has a chart for that as well.
Judging by the information, a prominent shift has taken place. From May 15th to today, the altcoin market cap has nearly doubled. In May, the market cap sat just below $80 billion. Today, it is worth over $156.7 billion. A very strong increase, and one that warrants excitement regarding the proverbial “altcoin season”.
Despite this prominent momentum, the altcoin market cap is still rising slower compared to Bitcoin’s Whereas altcoins have nearly doubled in market cap, Bitcoin noted a near 150% increase between May 15th and today. A very prominent trend worth keeping an eye on.