Bitcoin may be the king of crypto, but altcoins play a crucial role in the ecosystem. Their value and trends are often influenced by Bitcoin’s dominance, market cycles, and investor sentiment. While some altcoins aim to improve upon Bitcoin’s technology, others serve entirely different purposes. Understanding this dynamic helps navigate the ever-evolving crypto space.
Bitcoin Dominance
Bitcoin dominance refers to the percentage of the total cryptocurrency market capitalization that is held by Bitcoin (BTC).
When Bitcoin dominance rises, it suggests that altcoins are losing market share, either due to declining prices or reduced interest from investors. Conversely, a decrease in Bitcoin dominance is usually a sign of growing altcoin activity, as capital flows into smaller cryptocurrencies. This dynamic often leads to Altseason
Others Dominance
Represents the proportion of the cryptocurrency market held by all coins excluding the top 10, such as Bitcoin (BTC) and Ethereum (ETH).
This metric provides insight into the performance of smaller or emerging altcoins, highlighting their combined share of the total market capitalization. By analyzing this proportion, investors can gauge the influence of these less dominant assets relative to the major cryptocurrencies and identify trends or shifts in market sentiment.