Take a fresh look at your lifestyle.

This has been the evolution of the dominance of Bitcoin over time




He Bitcoi domainn (BTC) has varied greatly over the years, albeit always slowly.

First of all, you need to understand exactly what Bitcoin dominance means. It is the percentage of market capitalization that Bitcoin has in relation to the total of all cryptocurrencies. Therefore it is a percentage that theoretically can only vary from 0% to 100%.

Obviously, when only Bitcoin existed, this percentage was 100%, whereas now, according to data from CoinMarketCap, it has dropped to around 60%.

Taking the CoinMarketCap data as a reference, which is missing data prior to April 2013, on this date bitcoin's dominance had already fallen to 94%.

Bitcoin vs Litecoin in terms of dominance

It is worth noting that early altcoins, such as Litecoin, were born already in 2011, so in reality, only in 2010 the dominance of bitcoin was 100%.

Whereas in 2009, BTC had no exchange rates, because at that time there were no cryptocurrency exchanges, which means that bitcoin's market capitalization can only be calculated as of 2010.

Until December 2013, bitcoin's dominance remained above 90%, falling to 87% in March 2014.

It fell below 80% only in December of the same year, when the price of BTC fell to $ 300 after the first big speculative bubble burst in late 2013, which had raised it to more than $ 1,100.

Bitcoin and Ripple's Rise of Dominance

In fact, in 2013 Ripple (XRP) was born, which in December 2014 reached a considerable dominance of more than 13%.

XRP's peak dominance was reached in May 2017 at over 17%, while as a result of the large speculative bubble at the end of 2017, it peaked at over 15% in January 2018.

Ethereum was born in 2015, but did not reach significant dominance until March of the following year, when it exceeded 13%.

During the same period, bitcoin's dominance fell to 76% for the first time in history, but it soon rebounded to 87% in early 2017.

In 2017, bitcoin domain collapsed due to the speculative bubble that caused the value of ETH, XRP and other cryptocurrencies to skyrocket.

The lowest peak reached by bitcoin's dominance was on January 15, 2018, when it fell below 33%.

It's worth mentioning that although it was well below 50%, even at that time no other cryptocurrency did better, with ETH at 19%, XRP at 10%, and the remaining cryptocurrencies splitting the remaining 38%.

However, mainly due to the decrease in the value of altcoins, as early as February 2018 started a long and slow rise in bitcoin dominance, with a new peak in September of the following year, reaching almost 70%.

Since then it has slowly decreased to the current 60%.

The prices of altcoins and Bitcoin

The dominance of bitcoin tends to vary very little in the short term, and when it does vary, it often does not with big, fast excursions.

This is because very often the prices of altcoins are influenced by those of bitcoin, so often their market capitalization moves proportionally.

Also, in relatively quiet periods, when the dominance of BTC goes down, it tends to rise again, as the prices of altcoins tend to follow those of bitcoin.

The most significant variations occur when the prices of some altcoins inflate and become bubbles, which then explode and return things to a level of balance in the medium / long term.

Before 2017, this breakeven level was around 80% dominance per bitcoin, while afterwards it was between 50% and 70%.


Leave A Reply

Your email address will not be published.