Bitcoin is the dominant altcoin, surpassing Ethereum and other coins for most of its existence. Although this dominance has receded over the years, it still allows bitcoin to maintain its position as the most valued cryptocurrency in the world. However, in only a matter of years, bitcoin’s dominance on the market has declined by half, and according to FTX US President Brett Harrison, the encroachment is far from over.
Altcoins to Gain More Market Share from Bitcoin
In a recent interview on CNBC’s Squawk BoxBrett Harrison, president of FTX.US, shares his views on the market. He focuses on bitcoin’s dominance in comparison to altcoin. The dominance of the pioneer cryptocurrency has been a slow but steady downtrend that has seen bitcoin’s dominance ridden down to as low as 40% and Harrison expects this to continue.
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Squawk Box was told by President Solana that Ethereum and Solana, both digital assets, will continue to get more market share. Harrison also explained that the amount of market share controlled by just one asset, BTC in this example, will diminish over time.
“Assets like Ether, other alternative proof-of-stake assets like Solana, and these other alternative coins are all picking up in terms of market cap,” said Harrison. “Over time, we are going to see less and less of the total market share come from just one asset, Bitcoin alone.”
With this current trend, the market is expected to see more decline in BTC’s dominance over the market. However, this does not make BTC less valuable. Instead, investors will turn to other altcoins in search of better opportunities. BTC will lose market share.
BTC’s Dominance Over Time
Like anything in the crypto space, bitcoin’s dominance in the market has fluctuated widely. But one thing remains constant, and that’s the fact altcoins will continue to gain market share.
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Bitcoin held the majority of market share for five years before Cardano and Ethereum became mainstream. It held 96% market share in February 2017, according to the cryptocurrency. The digital asset has lost half this market share and now stands at 43.08%, five years after its creation.
BTC dominance falls to 43%| Source: Market Cap BTC Dominance on TradingView.com
It has become very evident that bitcoin is on the verge of falling over the years. One year later, bitcoin lost over 50% of its dominant position, and it reached its lowest point at 35% in 2018. While it has since regained more market share, the trends are pointing towards more downside. Blockchains like Ethereum or Solana continue to steal market share through DeFi and NFT capabilities.
Featured image taken from Banking Exchange. Chart courtesy of TradingView.com