Bitcoin (BTC), the world’s largest cryptocurrency, is currently facing a massive challenge from Ethereum and other digital currencies. The total market dominance of Bitcoin has reached its lowest level since July 2018 amid a jump in the market dominance of Ethereum, Binance Coin (BNB) and Dogecoin (DOGE).
According to the latest data published by Coinmarketcap, BTC’s market dominance reached 42.8% on 11 May, its lowest level in nearly 3 years. Despite the reason that Bitcoin is still the most valuable cryptocurrency in the world, its market dominance crashed from nearly 70% in December 2020 to as low as 42.7% on 11 May 2021.
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Contrasting to BTC, the total market dominance of Ethereum spiked significantly this year. Ethereum started this year with a market dominance of just 11%. According to Coinmarketcap, the total market dominance of ETH jumped above 19% on 10 May.
Binance Coin is the third most valuable digital currency in the world after BTC and ETH. BNB currently has a market cap of more than $100 billion, The total market dominance of BNB jumped from less than 1% in December 2020 to as high as 4.5% in April 2021.
Dogecoin (DOGE) is another major cryptocurrency that has gained substantial value over the last 4 months. In May 2021, DOGE became the 4th most valuable digital currency in the world after beating the total market cap of Tether, Cardano and XRP. DOGE has gained more than 12,000% this year, compared to a jump of 100% in the price of BTC.
Dip in BTC’s Market Dominance
The latest drop in the market dominance of BTC is mainly due to growing interest in altcoins. Ethereum, DOGE and XRP have attracted massive retail and institutional money since the start of 2021. Bitcoin’s market dominance has been falling sharply since April 2021. The total market dominance of the world’s largest cryptocurrency has dropped from 60% to 42.8% within the last 6 weeks. As of writing, BTC is trading near $56,000 with a market cap of more than $1.04 trillion.