Bitcoin dominates with over 62% of market share amid declining interest in altcoins

Bitcoin's market dominance has reached a 4-year high with a share of more than 62%. This is the highest level since March 2021, despite a recent correction by 29%. According to TradingView, the market share of BTC has been steadily increasing since early December, tempering expectations of an altcoin rally.

As Matrixport analysts note, experienced traders are shifting from altcoins to bitcoin, which has shown relative resilience. Further growth of BTC may take time amid tight monetary policy of the US Federal Reserve, the company said. Analysts estimate a potential peak of bitcoin dominance at 70%, after which the ‘altcoin season’ may begin.

Against the backdrop of bitcoin's growing market share, the positions of alternative cryptocurrencies are weakening. Ethereum's market share has fallen to 8.5% – the lowest in almost five years. At the same time, the ETH to BTC ratio fell to 0.022 – the lowest level since May 2020. Solana has lost 60% of its value in two months following a downturn in memcoin appeal. Cardano, Dogecoin, and other leading altcoins remain in the bear market, fallen more than 70% from their all-time highs. The information was provided by CryptoPotato.