It’s been a while since the entire cryptocurrency industry has been bleeding out. While all major cryptocurrencies are suffering from tremendous losses, something unusual is happening with Bitcoin (BTC). Although Bitcoin is also facing the same downtrend, still, it is achieving something that other majors have failed to achieve.
Bitcoin’s Dominance Keeps Rising
If you are monitoring the major cryptocurrencies, then you would see how major cryptocurrencies have been performing. The market valuations of major cryptocurrencies such as Ethereum, Cardano, Solana, and Avalanche have fallen tremendously.
While Bitcoin is also facing a similar trend, its valuation seems to be gaining prowess and more dominance in the cryptocurrency sector.
Looking at the overall fall of the cryptocurrency sector from the beginning of May until now, we can see it has experienced a 40% dip. This goes to show that the valuations of all major cryptocurrencies have continued bleeding out. However, the drop rate of altcoins compared to Bitcoin has been larger.
Reason Why Bitcoin’s Dominance is rising
The reason behind Bitcoin’s constant rise in dominance is that the investors have more trust in Bitcoin than altcoins. Bitcoin has always outrun the bearish trends and has always prevailed against all odds. Over the years, it has established itself as a market leader, with a following of investors more than any other cryptocurrency.
The CoinMarketCap report surrounding Bitcoin shows that in a 24-hour time period, its dominance has spiked by 1%. It may appear as a small surge when it comes to Bitcoin’s individual price rise. However, it is a huge gain when compared to the overall cryptocurrency sector. Following the recent surge, the current market valuation of Bitcoin is 45.7782%.
This means that compared to the altcoins, the investors are more interested in adopting Bitcoin. This is a positive sign for the investors and they must keep it in mind when investing in cryptocurrencies.
Ethereum Loses 5% Dominance
Compared to Bitcoin, the altcoin market is in a worse situation. As Bitcoin’s dominance keeps rising, Ethereum’s valuation is falling into the negative zone. In a matter of 24-hours, Ethereum has ended up losing 5% of its valuation.
Its comparison with Bitcoin shows that since October of 2021, it is the lowest price ETH has faced versus BTC. At the time of writing, ETH’s dominance is 17.9315%, which is an indication that investors have less confidence in the second-largest crypto.
With such sentiments, the investors may not be willing to invest in Ethereum. Therefore, it is highly likely ETH will be experiencing a surge any time soon.
Cardano Also Loses 5%
Cardano is also in the same rank as ETH in terms of losing its valuation. Its 5% loss in the past 24-hours has brought its dominance down to 1.3157%. Now, Cardano is facing the same downtrend as ETH and its price may also face a difficult time in making a recovery soon.