20% growth in bitcoin dominance since the beginning of 2022; What awaits the market?
Recent data show that bitcoin dominance has once again reached 46%. This rate was last reached in October 2021 (October 1400) when the price of Bitcoin was in the range of $ 60,000. However, this is happening now while the red chart of the largest digital currency on the market, 9 red candlesticks, is recorded in a row.
To Report Crypto Slate, the bitcoin mastery rate, is an indicator of the digital currency’s share of the total digital currency market. By March 2017, before the digital currency market (ICOs) became hot, Bitcoin had few competitors and a dominance rate of more than 95%. Then, in the bullish market of 2017, the 95% dominance rate of this digital currency disappeared and reached 35% by January 2018 (December 1996).
The fall in the bitcoin dominance rate to 35% was directly related to the rise in the price of Atrium, while 30 days before that, at the end of 2017, the price of bitcoin had reached a new peak. Then, by September 2019 (September 98) and when the price of Bitcoin reached the floor, the dominance rate of this digital currency grew again and reached 73%. Atrium prices fell 87 percent to $ 171 during that time.
Meanwhile, the price of bitcoin fell by only 20% from January 2018 (December 1996) to September 2019 (September 1998). The question is, should bitcoin dominance increase in 2022, as in previous Howing cycles? In addition, what impact does this have on other segments of the digital currency market?
یمت The price of Atrium has reached its lowest annual level compared to Bitcoin. One of the factors influencing the decline in the price of this digital currency is the issues and concerns related to Beacon Chain Atrium, a network based on proving Atrium shares, which has led to increased sales pressure and lower prices of this digital currency. It is worth mentioning that if we compare the other top coins on the market with Bitcoin, we will reach a similar trend.
The chart below shows the performance of Cardano, Binance Coin and Atrium digital currencies and compared with Bitcoin. If this downward trend and increase bitcoin dominance continues, Altcoins have the potential to experience a 74% drop against Bitcoin.
Also read: What is Bitcoin Dominance? Everything about the dominance of bitcoin
The market value of digital currencies is currently about $ 1.3 trillion, of which bitcoin is about $ 600 billion. Assuming that the price of bitcoin and the market value of digital currencies remain stable in the next few months, if bitcoin dominance increases as much as in 2019, only $ 350 billion will remain for the rest of digital currencies and more than 19,000 other projects. History has shown that in such times as digital currencies are called winter, weaker projects disappear and the current cycle can not be an exception to this rule.
Bitcoin dominance rate is a very important indicator that investors should pay attention to in order to get a broader perspective on the power of different digital currencies in the market. When the price of bitcoin goes up and at the same time the dominance rate decreases or stays the same, it means that other parts of the digital currency industry are growing. However, the rise of bitcoin dominance is usually a sign of a weakening digital currency industry and, of course, a good sign for fans of the market’s largest digital currency.