Bitcoin Dominance Exceeds 50%
Over the weekend, Bitcoin’s dominance in the crypto market, which measures its market capitalization compared to the total market capitalization of all other crypto tokens, increased to 52.92%.
This is a significant rise from its position at the end of May when it was still below 50%.
Bitcoin has consistently held the top spot in the crypto market in terms of market capitalization for the past year. However, its dominance has remained in a narrow range of 44% to 53%, with a notable increase in summer 2020 due to excitement around the approval of Bitcoin spot ETFs.
In April, Bitcoin’s dominance hit 52.86%, the highest level since April 2021. It continued to increase after ETF approvals and news of a potential conflict in the Middle East, causing investors to turn to Bitcoin as a safe haven asset.
Following this, while Bitcoin’s dominance remained relatively high, it began to decline as other assets, such as meme coins, gained popularity. Ether also had a moment in the spotlight in March with the approval of its spot ETFs on March 23.
