Altcoin Volume Dominance At Highest Since Jan 2021, Trouble For Bitcoin?

2023-1-12 19:30

On-chain data shows that altcoin volume dominance is now at the highest level since January 2021, while Bitcoin’s is at its lowest.

Altcoin Dominance By Volume Recently Touched A High Of 64%

As pointed out by an analyst in a CryptoQuant post, Bitcoin’s dominance is just at 16% now. The “dominance by volume” is an indicator that measures the percentage of the total crypto market trading volume that’s being contributed by a specific coin.

When the value of this metric goes up for any crypto, it means that particular crypto is observing a higher amount of activity relative to the rest of the market currently. This suggests that the coin is garnering more interest from investors right now. On the other hand, low values can imply that the crypto is losing mindshare at the moment as its volume percentage is going down.

Now, here is a chart that shows the trend in the dominance by volume for the entire altcoin sector combined (minus Ethereum), as well as for Bitcoin, over the past couple of years:

As shown in the above graph, Bitcoin’s dominance by volume has sharply decreased recently and has touched a value of just 16%. This is the lowest value BTC has observed during the last couple of years.

The altcoins (other than Ethereum), on the contrary, have observed their dominance shoot up in the last week or so, as the metric now has a value of 64%. This suggests that BTC has lost its market share to these alts recently.

The quant finds this trend “very concerning,” however. The reason behind that is the fact that whenever rallies have kicked off with altcoins being on top, they haven’t usually lasted for too long, and the prices have quickly come back down.

This can be very clearly seen in the chart. For example, the tops of both the bull rallies of 2021 (the ones in the first and second half of the year) took formation while the altcoins had a higher trading volume dominance than Bitcoin. The latest FTX crash also took place while alts were dominating the market.

It would appear that generally any sustainable and healthy price rallies have only started with the dominance of BTC being higher than these alts. One prominent example is that the July 2021 bottom, which kicked off the second-half bull run of 2021, took place with the Bitcoin volume percentage being higher than altcoins.

The entire market has been rallying in the last week, but if the historical pattern is anything to go by, this uplift may not last too long as the dominance of altcoins is at very high levels right now. This would spell trouble not only for Bitcoin but also for these alts themselves.

BTC Price

At the time of writing, Bitcoin is trading around $17,400, up 3% in the last week.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

Bitfinex Bitcoin Dominance Perps (BTCDOM) на Currencies.ru

$ 154.69 (-0.08%)
Объем 24H $0
Изменеия 24h: 1.06 %, 7d: 9.48 %
Cегодня L: $154.69 - H: $154.69
Капитализация $0 Rank 3800
Доступно / Всего 0 BTCDOM

dominance altcoin volume bitcoin highest 2021 pointed

dominance altcoin → Результатов: 126


Altcoin Indexes Take Beating As Investors Flip Alts For Bitcoin

Data shows the different Altcoin Indexes in the crypto market have taken a beating during the past week as investors have been flipping alts for Bitcoin. Bitcoin And Stablecoins Dominance Rises As Altcoins Struggle As per the latest weekly report from Arcane Research, the cryptocurrency market has observed a correlated decline recently, but altcoins have taken a more substantial hit.

2022-12-21 15:13


Altcoin Aversion: Why Bitcoin And Stablecoin Dominance Is On The Rise

Bitcoin and the crypto market are back in the red. The first crypto by market cap records a 2% loss in the last 24-hours and could push other digital assets into critical support zones. Related Reading | Bitcoin Indicator Hits Historical Low Not Seen Since 2015 At the time of writing, Bitcoin is one of the best-performing assets in this ranking only surpassed by Binance Coin (BNB) and Ethereum (ETH), according to data from Coingecko.

2022-5-4 01:00


Analyst on Litecoin and Ethereum: Don't squander this opportunity now that it's finally here

The second-largest cryptocurrency by market cap continued with its impressive 2021 performance by registering yet another ATH over $4000. With a significant market dominance, the largest altcoin has wThe post Analyst on Litecoin and Ethereum: Don't squander this opportunity now that it's finally here appeared first on AMBCrypto.

2021-5-10 16:00


Bitcoin Dominance Dives To Lowest In Years, Altcoin Season Is Finally Here

Bitcoin price was rejected from above $55,000 and is now back to sinking lower. Meanwhile, altcoins like Ethereum continue to climb complete unaffected by the leading cryptocurrency by market cap. The recent divergence between the top dog and the rest of altcoins, has resulted in Bitcoin dominance taking a nosedive to levels not seen since […]

2021-4-30 19:45