BitcoinBTCSince 2023, the dominance of Bitcoin, which is a measurement of its overall market share, has steadily increased amid an avalanche of cryptocurrency tokens and coins.
The BTC market is currently dominated by 61.6% of the total, down from a peak local dominance of 64.3% on February 3.
BTC market dominance broke back above 60% Fears of an economic slowdown led to a market slump on February 2. prolonged trade war The United States has a number of trading partners.
The recent downturn in the market has been more damaging to altcoins than BTC, due to lower liquidity and higher risk profiles.
Bitcoin dominance is on the rise since 2023. Source: TradingView
The current market cycle also features Bitcoin exchange-traded funds (ETFs), which silo liquidity into these financial instruments — preventing capital rotation into altcoinsThe crypto market has become familiar to traders and investors.
Investors used to rotate their profits, initially from BTC and later on altcoins with high capitalizations into higher risk investments.
The traditional investments vehicles are siloed and have a limited liquidity. proliferation of new coins and tokens Analysts have claimed that Altcoin Season is now over and no longer a part of current and future markets cycles.
Related: Bitcoin poised to reclaim $90,000, according to derivatives metrics
There are too many tokens on the market
Total number of crypto tokens and coins listed CoinMarketCap was on February 8, 2019. below 11 million unique assetsAs of 15 March, the number of digital asset listings on this website had risen to more than 12,7 million.
There are tens of millions unique digital assets floating on the market. Source: Dune
The Overlooked 600,000 tokens were launched in January 2025 alone. Most of the assets in this list were altcoins, low-cap altcoins or memecoins.
According Jesse Myers from Jesse Myers market research says that when these coins fail they don’t go down to $0 Instead, they linger around market capitalizations of $10,000 to $100,000 — permanently trapping capital inside illiquid pools.
Coinbase CEO Brian Armstrong is concerned about the rapid growth of digital tokens. reevaluate the exchange’s token listing process Meet consumer demands
Magazine: DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame
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Source: cointelegraph.com
