According to CoinMarketCap data, Bitcoin’s market dominance has climbed to 60.6% as altcoins struggle, marking a rise from its December low of 51%.
According to CoinMarketCap data, Bitcoin’s market dominance has climbed to 60.6% as altcoins struggle, marking a rise from its December low of 51%. Despite this increase, Bitcoin’s price has remained stable between $90,000 and $100,000 since November 2024. The total cryptocurrency market capitalization remains unchanged at $3.5 trillion, while TOTAL2, the total crypto market cap excluding Bitcoin, has dropped from $1.6 trillion to $1.3 trillion.
The shift in dominance is not due to Bitcoin’s gain in strength but rather a decline in altcoins. However, certain legacy cryptocurrencies, including XRP, Litecoin, and LEO, have outperformed Bitcoin in recent months. XRP has seen a 19% gain, Litecoin is up 10%, and LEO has risen 7%, while Bitcoin has only gained 3.5% during the same period. This suggests that some investors favor older, more established cryptocurrencies over newer alternatives.
Meanwhile, market fragmentation continues to grow as cryptocurrency exchanges expand their offerings. Coinbase and Kraken have each introduced around 100 new spot trading pairs in the past year. The rise of token creation platforms such as Pump.fun has made it cheaper and easier to issue new speculative tokens, further contributing to liquidity fragmentation across the market.
The increasing number of new tokens has spread liquidity across a wider range of assets. The creation of speculative tokens has become more accessible, making it harder for individual projects to maintain attention and trading volume.
The market’s current structure indicates a possible shift in investor behavior, with renewed interest in legacy cryptocurrencies and a decline in altcoin performance. At the same time, Bitcoin’s ability to sustain its dominance without major price appreciation raises questions about the broader market dynamics.
As liquidity continues to fragment and the number of tradeable assets grows, investor focus appears to be shifting back to more established cryptocurrencies. The market’s response to these conditions, alongside potential institutional capital flows, will likely determine whether these trends will persist in the coming weeks.
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