Solana

Bitcoin

Coin

BlackRock

Bitcoin’s dominance ratio surged to nearly 60% in August, driven by a significant increase in the crypto’s value. Year-to-date, BTC’s value has risen by about 51%, adding nearly $450 billion to its market cap despite fluctuations in price. Glassnode data highlights that long-term Bitcoin holders remain resolute, continuing to accumulate and retain their coins.
These <a href="https://insights.glassnode.com/the-week-onchain-week-34-2024/" rel="noopener noreferrer nofollow" target="_blank">steadfast investors</a> continue to accumulate and hold onto their coins, with data showing that “HODLing behavior is significantly outpacing spending behavior.”
<h3 id="span-style-font-weight-400-bitcoin-achieves-a-historic-peak-in-dominance-span">Bitcoin achieves a historic peak in dominance&nbsp;</h3>
The last time BTC’s dominance ratio exceeded 60% was in February 2021. Despite an outstanding 160% gain in 2023ᅳthree times more than its price growth in the previous eight monthsᅳBitcoin’s dominance ratio was lower compared to this year.&nbsp;
The boost in institutional interest from major financial firms such as BlackRock and Fidelity played a crucial role in Bitcoin’s recovery from the 2022 bear market. Still, its dominance ratio remained above 50% only intermittently last year.
According to <a href="https://www.statista.com/statistics/1269669/bitcoin-dominance-historical-development/" rel="noopener noreferrer nofollow" target="_blank">Statista</a>, Bitcoin’s dominance ratio was at 40% in January 2023, with altcoins holding around 60% of the market. Even though Bitcoin’s price surged, its dominance ratio only increased by 5% over the next four months, reaching 50% in October before slipping to 47% by December.
<figure style="width: 100%" class="wp-caption alignleft">
 <img loading="lazy" src="https://www.cryptopolitan.com/wp-content/uploads/2024/08/Bitcoin-dominance-soars-to-almost-60.png" alt="Bitcoin dominance soars to almost 60%" width="1405" height="751">
 <figcaption>
 Bitcoin Dominance-Source: TradingView
 </figcaption>
</figure>
In 2024, Bitcoin’s dominance improved significantly. From January to June, its dominance ratio fluctuated between 48% and 53%. By the first week of August, it jumped to nearly 60%, a level not seen since February 2021. The current dominance is <a href="https://www.tradingview.com/symbols/BTC.D" target="_blank" rel="noopener noreferrer nofollow">57.47%</a>.
<h3 id="span-style-font-weight-400-solana-and-binance-coin-see-their-dominance-ratios-rise-span">Solana and Binance Coin see their dominance ratios rise&nbsp;</h3>
According to Coingecko <a href="https://www.coingecko.com/en/coins/solana" rel="noopener noreferrer nofollow" target="_blank">data</a>, besides Bitcoin, only two other major cryptocurrencies saw an increase in their dominance ratios this year. Solana’s dominance ratio more than tripled, rising from 0.78% in January to about 3% last week. Binance Coin experienced a smaller increase, with its dominance ratio climbing from 3.1% to 3.5%, indicating steady but less dramatic growth.&nbsp;
In contrast, the <a href="https://www.tradingview.com/symbols/ETH.D/" target="_blank" rel="noopener noreferrer nofollow">dominance ratios</a> of some leading cryptocurrencies have actually gone down between January and August. For instance, Ethereum’s dominance dropped from 18.1% to 14.6%, hinting at a change in the market sentiments. Even Tether’s dominance ratio also fell from 6.5% to 5.2%, while XRP’s share decreased from 2.7% to 1.4% during the same period.

Bitcoin dominance ratio soars to almost 60%

Table of Contents

Cryptopolitan_News

Other articles published on Aug 25, 2024

Join our free newsletter for daily crypto updates!