Altcoins Take The Reins After Bitcoin Market Dominance Hits Three Year Low

Bitcoin’s market dominance fell to a three-year low of 40.05% after the weekend’s Musk drama noticed its worth fall again beneath $45,000.

What Occurred: Crypto Twitter blamed the Tesla Inc (NASDAQ:TSLA) CEO for the selloff, alleging his tweets hinting at an imminent Bitcoin selloff by Tesla brought on a lot of market contributors to panic promote their very own share of the digital asset.

Certainly

— Elon Musk (@elonmusk) May 16, 2021

Whereas Bitcoin (CRYPTO: BTC) isn’t the one cryptocurrency that was topic to the weekend’s antagonistic worth actions, altcoins now accounted for almost all of the market, reaching a collective market cap of $1.2 trillion.

Ethereum’s market dominance stood at a three-year excessive of over 19%, whereas others like Binance Coin (BNB) and Cardano (ADA) accounted for over 3% every.

Why It Issues: Since September 2018, Bitcoin has accounted for over 50% of the crypto market, and through the peak of the asset’s bull run between December 2020 and March 2021, dominance reached a excessive of 70%.

In actual fact, a couple of large-cap altcoins even managed new all-time highs amidst the market-wide selloff. Considered one of these cash was Cardano (ADA), which reached a excessive of $2.42 over the weekend. ADA’s 24-hour losses have been additionally much less important than different cash, because it remained round $2.19 at press time regardless of solely breach the two-dollar mark on Saturday.

Solana (SOL) was one other altcoin that rose to a brand new excessive, because it breached $52.50 earlier right this moment. The token’s 24-hour buying and selling quantity was up by 227% to $2.56 billion on the time of writing.

“The Bitcoin dominance continues to be falling,” wrote crypto dealer “The Moon” on Twitter. “The alt season just isn’t over but. However my intestine feeling is that the top is close to!”