Bitcoin dominance is on the rise reaching levels that it has not seen since July 2017. Meanwhile, most altcoins are plummeting relative to BTC. Some of the most prominent analysts in the cryptocurrency industry have repeatedly claimed that Bitcoin will soon reach a market dominance of 80 percent or more. However, a new report by Binance suggests that it will soon retrace.
Since its release in Jan. 9, 2009, Bitcoin has entirely dominated the cryptocurrency market. There were several occasions between then and 2017 when its dominance fell under 90 percent, but on average it has always remained above 93 percent. It was not until the 2017 bull market until BTC’s dominance saw its first major drop.
As new ventures joined the space and introduced their tokens by forking off other cryptocurrencies or launching initial coin offerings (ICOs), the industry was flooded with new projects that claimed to bring innovation and become the “new Bitcoin.” As a result, speculation took hold over the market and capital started flowing out of BTC into new startups, leading to a significant drop in its dominance.
For the first time since its inception, Bitcoin plunged from a 95 percent dominance in Feb. 20, 2017 to 48 percent in early June of the same year while Ethereum rose to 31.5 percent and XRP to 9.4 percent. Despite regaining control of the market to reach a high of 70 percent on Dec. 8, 2017, BTC dropped to a new all-time low of 35 percent a month later. Following a slow recovery, Bitcoin dominance hovered around 50 and 58 percent from August 2018 until April 2019.
April represented a pivotal time for Bitcoin.