Bitcoin Dominance Reaches Over 49%, Highest in 2 Years – What’s Going On?
Bitcoin’s dominance in the cryptocurrency market has reached over 49%, its highest level in two years. This means that Bitcoin now holds more than half of the market share of the total cryptocurrency market cap.
The increase in Bitcoin’s dominance is due to a combination of factors, including a sharp increase in its price compared to other cryptocurrencies, an increase in its hash rate, and an increase in the number of institutions investing in it. There is also speculation that the increase in its dominance may be due in part to uncertainty surrounding the launch of new ICOs and new blockchain projects, causing investors to park their money in Bitcoin instead.
Overall, the surge in Bitcoin’s dominance can be attributed to its higher liquidity and its looks to remain as one of the most secure and liquid asset in the crypto space despite numerous projects like Ethereum, and other altcoins which have gained momentum and market share having been rising for the past month. Investors may be taking a wait and see approach following the rise in regulation of the crypto space and the transition to the “Ethereum 2.0” network.
One thing is certain, given Bitcoin’s demonstrated resilience during tumultuous markets, it is likely to remain the market leader for the foreseeable future.