Market Dominance in the world of Cryptocurrencies!
The dominance of cryptocurrency is the percentage of its market capitalization value with respect to the capitalization of the total market. At first the Bitcoin for being the first and only cryptocurrency that existed, its capitalization value was the same as the value of the total market, therefore the Bitcoin value at that time was not relevant, of course this has been changing by The creation of other cryptocurrencies.
Therefore, when the greater the capitalization of the market of a cryptocurrency compared to other Altcoins, the greater the dominance rate of that cryptocurrency. For such reasons, dominance is a key factor in order to know the position in which the market of cryptocurrencies is located and the changes that can occur in a short term of time.
The capital flows between Bitcoin and Altcoins such as Litecoin, Ethereum, XRP, among others and of course Bitcoin is the king, as it is at the top and controls a large part of the volume of operations, therefore is the Dominant Cryptocurrency.
However, the dominance of Bitcoin is not always affected by the lower cryptocurrencies, since it is only a proportion and not an absolute term, therefore if the Bitcoin lowers the Altcoins also lower a similar rate. Therefore, it is most likely that Bitcoin remains at top. Finally, we must bear in mind that dominance does not reflect its real value and does not mean an influx of money either. It is just a tool that can give us a better perspective of how much the cryptocurrency has grown.
As we can see the bitcoin has always stayed around 50% on average of the total market, something that has been affected in recent months, since its current percentage is below 40%. We must bear in mind that Bitcoin is the original cryptocurrency and most people prefer to buy Bitcoin, as it is an excellent option to start in the world of cryptocurrencies.
However, the price of Bitcoin only fluctuates slightly, but maintains its long-term value unlike other alternative currencies. For that reason the dominance of Bitcoin is always high even when the market goes down or goes up.
Rise of Altcoins
This term became popular between the years 2017 and 2018 with the fall of Bitcoin, due to that several investors sought investment alternatives in other cryptocurrencies. Thanks to that other cryptocurrencies could have a place in the market of the crypto where Bitcoin no longer represented 95% under 38% and other Altcoins grew more than 400%.
The main currencies are currently: Ethereum, BNB, USDT, SOL and XRP and have been consolidated in the market on this date. As a curious data this period was also called: "Spring of the Altcoins".
An interest in new cryptocurrencies grew, then the investors noted that in those currencies that were very cheap there was an investment opportunity, since these currencies could grow in a short period of time and it was there when they decided to bet for them when the Bitcoin low. The demand for these Altcoins was so high that the Altcoins season began where almost all Altcoins had a significant increase.
However, after that event the Altcoins did not return to price, on the contrary, they went down and the Bitcoin increased again. It is difficult to predict when it will be the next season of Altcoins, as there are multiple factors that lead to the increase of Altcoins, one of them is that investors are not willing to leave Bitcoin.
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