Bitcoin, the world’s largest cryptocurrency, is facing a tough challenge as BTC’s market dominance plunged below 48% on Friday, the lowest level since August 2018. According to the latest data published by Coinmarketcap, the market dominance of Bitcoin dropped from 70% on 1 January 2021 to as low as 47.9% on 30 April 2021. The latest decline in BTC’s market dominance is due to a massive surge in altcoins.
Altcoins post strong gains since the start of this year.
Cryptocurrency assets like Ethereum (ETH), Binance Coin (BNB), XRP, and Dogecoin (DOGE) have posted strong gains since the start of this year. Yesterday, ETH touched an all-time high of approximately $2,800. The world’s second-largest cryptocurrency is currently trading near $2,770 with a market cap of more than $320 billion. Contrasting to Bitcoin, ETH’s market dominance has increased significantly since the start of 2021 and currently stands at around 15%. The market dominance of the leading cryptocurrency has plunged nearly 10% within April. During the second week of April 2021, the total market dominance of BTC reached 54%, the lowest level in the last year.
Companies are now diversifying their cryptocurrency portfolios.
The recent boom in DeFi, NFTs, and social tokens have played a major role in the dip of Bitcoin’s market dominance. Cryptocurrencies like XRP and BNB also reported significant growth during the last few months. BNB, the world’s 3rd largest cryptocurrency, is up by more than 1,500% within 2021, compared to a jump of approximately 80% in BTC. Several other cryptocurrencies have also outperformed Bitcoin in terms of the price jump. Dogecoin, the world’s 7th most valuable cryptocurrency, gained more than 7,000% within this year in a frenzy. Cardano (ADA), Polkadot (DOT), Uniswap (UNI), and Chainlink (LINK) are also up significantly in the last four months.