The market capitalization of the flagship cryptocurrency recently hit levels greater than that of all other cryptocurrencies combined.
Bitcoin (BTC) has had some difficult runs recently, but maybe its market dominance was never in doubt. This follows after the market capitalization of the flagship cryptocurrency recently hit levels greater than that of all other cryptocurrencies combined.
According to TradingView data, Bitcoin dominance surpassed 50% on Monday, in what was its first attempt in over 2 years. Since the BTC price headed for the rocks following China’s ban in May 2021, the closest BTC dominance came to 50% was in June 2022. That was just before the entire market plummeted again on the news of persistent inflation.
Here’s What May Be Helping Bitcoin Dominance
For what it’s worth, Bitcoin dominance represents the ratio of BTC’s market cap to that of the entire crypto market. However, many have faulted the metric for including stablecoins within its calculations. They argue that BTC’s true market share is not well represented by that calculation since stablecoins are arguably just dollars trading on the blockchain.
Nevertheless, even the so-called stablecoins have had a tough year so far. In February, the US Securities and Exchange Commission (SEC) ordered Paxos to stop issuing BUSD. More recently, top altcoins such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) have also suffered significant losses. This follows after the SEC filed a lawsuit against Coinbase alleging that all three coins are unregistered securities.
Similarly, the regulator also slammed Binance with a lawsuit that claimed that the exchange’s native token BNB is a security. News of the suit, expectedly, has also meant that the BNB token has plunged no less than 20% in the ongoing month alone. It might be worth noting, however, that BNB holds a significant share of the crypto market. It is the fourth largest crypto by market cap.
With serious regulatory pressure on all sides, stablecoins have had billions of dollars wiped off their combined market capitalization. And as a result, BTC once again rules the crypto market convincingly.
Perhaps, there may even be room for more dominance. Last Tuesday, MicroStrategy’s Michael Saylor predicted that Bitcoin dominance will eventually rise above 80% as time goes on. That is if regulators can maintain the momentum at which they currently clamp down on other digital assets.
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