Bitcoin has maintained dominance over altcoins like Ethereum and others for the longest time. This dominance, although has declined over time, still helps the digital asset maintain its title as the most valuable cryptocurrency in the space. However, in only a matter of years, bitcoin’s dominance on the market has declined by half, and according to FTX US President Brett Harrison, the encroachment is far from over.
Bitcoin To Lose More Market Share To Altcoins
In a recent interview on CNBC’s Squawk Box, FTX.US president Brett Harrison shares his thoughts around the market, most notably the market dominance of bitcoin in relation to altcoin. The dominance of the pioneer cryptocurrency has been a slow but steady downtrend that has seen bitcoin’s dominance ridden down to as low as 40% and Harrison expects this to continue.
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The President told Squawk Box that other digital assets like Ethereum and Solana will continue to take up more market share from the asset. And over time, Harrison explained, the percentage of market share that is controlled by a single asset, in this case, BTC, will continue to wane.
“Assets like Ether, other alternative proof-of-stake assets like Solana, and these other alternative coins are all picking up in terms of market cap,” said Harrison. “Over time, we are going to see less and less of the total market share come from just one asset, Bitcoin alone.”
With this current trend, the market is expected to see more decline in BTC’s dominance over the market. This does not mean that the digital asset becomes less important, but as investors turn to altcoins for better opportunities, BTC will find itself commanding less and less of the market share.
BTC’s Dominance Over Time
Like anything in the crypto space, bitcoin’s dominance in the market has fluctuated widely. However, one thing remains constant and that is the fact that altcoins continue to eat into this market share.
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Only five years ago, before the likes of Ethereum and Cardano grew into their own, Bitcoin maintained the vast majority of the market share. In February 2017, the market share commanded by the digital asset was 96%. Five years later, it has lost half of this dominance to be sitting at 43.08% as of the time of this writing.
BTC dominance declines to 43% | Source: Market Cap BTC Dominance on TradingView.com
Over the years, the decline has been very obvious. By 2018, only one year after, bitcoin managed to lose more than 50% of its dominance, seeing it touch its lowest point of 35%. It has since recovered more market share since this time, but trends point towards further downside as blockchains like Ethereum and Solana steal more market share with DeFi and NFT capabilities.
Featured image from Banking Exchange, chart from TradingView.com