Cryptocurrency

Bitcoin dominance falls below 60%

For months, speculation about a possible Altcoin Season and now she seems to be finally here. At least that tells us on the first glance, the Bitcoin dominance on Coinmarketcap. This is, in fact, again a new low for the year. The main reason for this massive dominance of the loss is found not only in various small projects that have emerged in the last few weeks, but by and large Chainlink.

Bitcoin dominance, it falls back to 2019 Level

The Bitcoin dominance has fallen to under 60% according to Coinmarketcap. This is the Level we have had recently in June 2019. The loss of dominance has for BTC, no strings or similar. This number is used to measure only the impact of Bitcoin on the market as a whole. Therefore, Bitcoin currently has approximately 59.4% of the total market capitalization. In addition, it is partly drawing conclusions when we arrived in a Altcoin Season.

The Altcoin Season, or better said, the DeFi-Season, has already started a few months ago, and some projects could benefit from this course technically neat. Among the winners Chainlink (LINK) certainly. The project was able to grow in the last 7 days, about 84% and has currently reached a new all-time high of 17,59 USD. Thus, the market capitalization of Chainlink is of course increased and has pushed the Bitcoin dominance down.

DeFi projects in the Hype

To curb the strong demand for DeFi and everything is frolicking in this field, hardly. The longer the sideways movement of Bitcoin price, many Altcoins have the necessary scope to reach new all-time highs. But it is playing with fire. Each large-BTC-movement up or down could put the Party to a quick end. So it was at least often in the past. At this point, therefore, caution is required.

Ultimately, the Bitcoin dominance for BTC does not play a large role. Especially because the real Bitcoin dominance is much higher than that of Coinmarketcap specified. The many small projects that come up each and every day and in the calculation, will disappear in the next few years, for the most part, again. As a result, the Bitcoin domination will be diluted in the short term. In addition, many smaller projects have little trading volume and should be excluded from the calculation.

BTC still remains at the top

Therefore, you should make no Worries that Bitcoin will soon be replaced by an Altcoin. BTC still remains of the clock and the market and is not likely to change. quite the contrary, the interest in Bitcoin seems to explode currently literally. Especially not only by individual investors but especially by institutional investors.

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The comments in this article do not represent any trading recommendations or investment advice.

About the author

Eve Manning

Eve Manning

A native Texan, Eve first started out as a Finance Analyst and later realized that her true passion was not in trading but in writing. She leverages her experience in the Finance industry to analyse and write in-depth news articles covering the Cryptocurrencies, Economy & Finance industries.

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