On Wednesday, the dominance of Bitcoin soared to 61%. It was its highest point since November 20,25. This metric is up from 58.44% in the beginning of April. It shows that BTC continues to be the dominant crypto currency.
Binance has also seen a 49% increase in altcoin trading volumes over the past two-month period. Additionally, 12,6% of Binance’s altcoins have regained a 200-day SMA.
Chart showing dominance of Bitcoin over a one-week period. Source: Cointelegraph/TradingView
Altcoins showing signs of early recovery
Darkfost Crypto Analyst: Bitcoin has gained Since its lows of $60,000 on February 6, its dominant position has increased to 61.3%.
Altcoins were under pressure for most of this period, but TOTAL3, which measures the crypto market capital excluding Bitcoin, Ether and Ripple, has risen by 17%, reaching a new two-month record of $765 billion. Although altcoins have lagged behind BTC in terms of recovery, several indicators show signs of improving.
TOTAL3, one-week chart. Source: Cointelegraph/TradingView
CryptoQuant Data showed Trading activity on the altcoin markets was gradually increasing. Comparing the volume of BTC and ETH trading on Binance, their share grew to 49 percent on Wednesday. This is up from 31 percent in March. After several months where capital was concentrated in Bitcoin and Ether only, the rise indicates that there is now a growing interest outside these two crypto-assets.
Darkfost also added that although the change still appears moderate, it is quite different from the rapid rotation seen during 2024’s altcoin rally.
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Source: CryptoQuant. Altcoin dominance based on volume. Source: CryptoQuant
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Trends in exchange volume point towards a rotation
Market Analyst CW8900 pointed The increasing activity of centralized exchanges is another indication that participation has improved beyond Bitcoin. The analyst claims that altcoin volume has steadily increased over the last few weeks, even if you exclude the top five cryptocurrencies.
CEX volume ratio vs. Top 5 crypto. Source: CryptoQuant
AltSeason Index for 90 days also rose to 28,6, the fastest in several months. The index determines whether or not a majority altcoins perform better than Bitcoin during a specified period. A reading above 75 is associated with strong altcoin cycles. However, CW8900 added,
“The indicator also shows that there was no real AltSeason in this cycle. The period when the AltSeason Index reached its highest point was early 2024, and even that value was relatively low compared to previous AltSeasons.”
CryptoQuant data After months of poor performance against Bitcoin, the market for altcoins has also shown improvement. The average altcoin trades now 23.47% under its 200 day simple moving average. This is up from 44.4% in earlier cycles. Similar readings appeared at the end of the bear market in late 2022.
Source: CryptoQuant. Source: CryptoQuant
Related: Crypto Fear and Greed Index turns neutral for first time since January: Is $100K BTC next?
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Source: cointelegraph.com
