Altcoins Surge Ahead as Bitcoin Dominance Dips to 16%

• Altcoin volume dominance recently touched a high of 64%, while Bitcoin’s is at its lowest of 16%.
• This suggests that the altcoins are garnering more interest from investors at the moment.
• A chart shows the trend in the dominance by volume for the entire altcoin sector combined, as well as for Bitcoin, over the past couple of years.

Recently, on-chain data has shown that altcoin volume dominance is now at its highest since January 2021, while Bitcoin’s dominance is at its lowest. This suggests that the altcoins have been garnering more attention from investors recently, as the dominance by volume metric shows a higher amount of activity for the altcoins relative to the rest of the market.

The „dominance by volume“ is an indicator which measures the percentage of the total crypto market trading volume that is being contributed by a particular coin. When this metric increases for any crypto, it means that there is a higher amount of activity for that coin in comparison to the rest of the market. On the other hand, a low value of this metric implies that the coin is losing its mindshare, as its volume percentage is going down.

This is clearly illustrated in the chart below, which shows the trend in the dominance by volume for the entire altcoin sector combined (minus Ethereum), as well as for Bitcoin, over the past couple of years:

The two metrics seem to have gone opposite ways in recent days | Source: CryptoQuant

The chart clearly shows that Bitcoin’s dominance by volume has sharply decreased recently and has hit a value of just 16%. This is the lowest value BTC has seen during the last couple of years. On the other hand, the altcoins (other than Ethereum) have seen their dominance shoot up in the last week or so, as the metric now has a value of 64%. This suggests that BTC has lost its market share to these altcoins recently.

It is important to note that the data presented in this article is not an indication of future performance, and should not be taken as financial advice. Rather, this data is simply meant to provide an insight into the current state of the cryptocurrency market. As always, investors should do their own research and make their own investment decisions.

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