Bitcoin dominance hits four-year high amid altcoin struggles
Bitcoin dominance
Bitcoin’s dominance in the cryptocurrency market has surged to its highest level since March 2021. Analysts at CryptoRank have highlighted that BTC has shown greater resilience than altcoins during the recent market downturn.
During the latest major market correction, BTC’s price dropped by 7.8%, while ETH fell by 11.1% and SOL declined by 13.5%.
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Why is Bitcoin’s dominance increasing?
CryptoRank analysts note that Bitcoin’s dominance chart has shown steady growth over the past four years. Several key factors contribute to this trend:
- Bitcoin is more than just a crypto asset; it is increasingly seen as an alternative to gold.
- Discussions around crypto reserves primarily focus on Bitcoin, reinforcing its role as the leading store of value.
- The expansion of Bitcoin’s DeFi ecosystem is strengthening its position in the market.
- Bitcoin has avoided negative narratives, unlike Ethereum, which faces internal struggles, and Solana, which has been impacted by scam memecoin controversies.
Last week, Bitcoin’s market dominance surpassed 60% following the LIBRA scandal.
