05.02.2025 16:14
In the cryptocurrency market, Bitcoin's (BTC) dominance has increased from 51% to 58.8% since December. While the total market capitalization remains at around $3.5 trillion, the altcoin market has lost $300 billion in value. Established cryptocurrencies like XRP and Litecoin have outperformed Bitcoin's 3.5% increase.
The balance of power in the cryptocurrency world is shifting. The fact that Bitcoin's price is hovering around the $90,000-$100,000 range indicates that the increase in market dominance is due to the weakness of altcoins. This situation reveals that investors' risk appetite has decreased and they are turning towards established cryptocurrencies.
Bitcoin Dominance in the Cryptocurrency Market Reached 58%
A significant transformation is taking place in the cryptocurrency market. The total cryptocurrency market value, excluding Bitcoin, has decreased from $1.6 trillion to $1.3 trillion. This decline shows that investors are shifting from altcoins to Bitcoin.
Among established cryptocurrencies, XRP has increased by 19% and Litecoin by 10%. This performance indicates that investors are gravitating towards cryptocurrencies with a long history and a solid follower base.
On the other hand, major exchanges Coinbase and Kraken have added approximately 100 new spot trading pairs each in the last 12 months. The proliferation of platforms like Pump.fun and the opportunity to issue cheap tokens are deepening the fragmentation of liquidity in the market.