Bitcoin Market Dominance Plunges To A 3-Year Low Of 40%

While bitcoin continues to tumble in response to Elon Musk’s Twitter activity once more, the altcoin dominance has grown to its highest level in about three years. The altcoins have gained strength after tagging a record combined capitalization of around $1.5 trillion in the past week.

At the time of writing, Bitcoin represents around 40.3% of the cumulative crypto-asset capitalization, which is the lowest level since June 2018, based on data acquired from CoinMarketCap.

Bitcoin dropped to a market dominance low of 33% in January 2018 when it was cooling from its previous peak while the altcoins were hitting their peaks. Currently, it is not far off its second-lowest dominance level of 36% that was recorded in May 2018.

Bitcoin dominance: CoinMarketCap

The total capitalization of altcoins is sitting above $1.25 trillion after peaking at $1.5 trillion in the past week. Ethereum has recently seen its dominance rise, with ETH’s market cap creeping up to nearly half of BTC’s to represent a crypto market dominance of 19%. Notably, Ether also represents 32% of the cumulative altcoin market cap.

Binance Coin comes third, representing 4% of the total crypto market capitalization, followed by Cardano (ADA) with 3.3%, and Dogecoin (DOGE) with 3%. On the contrary, Binance Coin has a 6.7% dominance in the altcoin markets, while Cardano’s dominance is at 5.5% and Dogecoin represents 5%.

Elon Musk is believed to have deepened BTC’s loss of dominance when he mentioned that Tesla may be offloading its Bitcoin holdings in a May 17 tweet. This announcement triggered a 15% crash within 18 hours.

While bitcoin has so far lost 35% from its April 14 all-time high, many altcoins have experienced weaker pullbacks, with Ethereum down 24% from its May 12 peak of around $4,350.

Some of the markets are rallying despite the bearish meta-trend, with Cardano rallying to reach an all-time high of $2.45 on May 16.