Bitcoin has emerged as one of the best performing assets so far, after weathering a difficult 2023 to rise by over 100% based on the CoinGecko data which spans over 90% of the crypto market capitalization.
As a result, investors and institutions alike have flocked to Bitcoin as a hedge against economic uncertainties, inflation, and a store of value. Its increasing adoption and recognition as a legitimate asset class has fueled this impressive growth, and its market dominance is also crossing the halfway mark.
According to data from Trading View, Bitcoin dominance, which quantifies the proportion of the total cryptocurrency market capitalization attributed to Bitcoin, has surpassed the 50% threshold.
This illustrates that Bitcoin is responsible for half of the entire cryptocurrency market’s approximately $1.4 trillion market capitalization. As per data from CoinGecko, Bitcoin’s current market capitalization is estimated at over $700 billion as of this writing.
Bitcoin’s market dominance has risen by over 10.5% since November 2022. This increase can be largely attributed to investors turning to Bitcoin as a safe haven, especially in response to the FTX crisis, and in light of increasing regulatory scrutiny of cryptocurrency assets in the United States.
Another cryptocurrency, Ether, is emerging as a strong asset having recorded a commendable increase of ~60% for the year. This growth underscores the continued interest in decentralized applications (DApps) and the Ethereum ecosystem.
Developers and entrepreneurs continue to leverage the Ethereum blockchain to build innovative solutions, contributing to its continued relevance. Ether’s market dominance has remained relatively stable at around 20% for most of the past year.
At present, the combined value of Bitcoin and Ether constitutes approximately 70% of the total cryptocurrency market.
According to Michael Saylor, Co-Founder of MicroStrategy, and a well-known proponent of Bitcoin, the growing regulatory pressure from the Securities and Exchange Commission (SEC) will cause the decline of stablecoins and most other cryptocurrencies, sending Bitcoin to over 80% dominance.
“The entire industry is destined to be rationalized down to a Bitcoin-focused industry, with maybe half a dozen to a dozen other Proof of Work tokens.”