Critics of Bitcoin claim that BTC is now losing its competitive edge as a pioneer. With that, many people are anticipating that the "alternate season" is just around the corner or could already be underway.
Bitcoin market dominance falls below 40%
BTC's market dominance continues to decline, finally bottoming out just below 40%. This was close to its all-time low in January 2018 at 36.7%, according to data from TradingView.
The dominance of the Bitcoin market refers directly to the market capitalization ratio of Bitcoin compared to the total crypto market capitalization as a whole. To add, this is not really the first time that BTC has fallen in market capitalization in the past.
The last time BTC fell in market capitalization
According to the story of CoinTelegraphAs of May, BTC had reportedly shrunk to just 40.3% of the combined crypto asset capitalization as seen on CoinMarketCap. Bitcoin also approached the same level in September.
Peter Schiff, Bitcoin critic and president of Europac, said the Twitter that BTC is going to lose its competitive advantages as a pioneer. To add, Schiff said that with over 16,000 alternative cryptos for people to choose from, BTC's market dominance is currently below 40%, which was the first time since June 2018.
He also noted that with an unlimited supply of what he said were "easily created cryptocurrencies with virtually identical properties," BTC will lose its competitive advantage.
With over 16,000 alternative cryptocurrencies to choose from, Bitcoin's market dominance is now below 40% for the first time since June 2018. With an unlimited supply of easily created cryptocurrencies with virtually identical properties, #Bitcoin you are losing your competitive edge as a pioneer.
- Peter Schiff (@PeterSchiff) December 28, 2021
Ethereum domain
Ethereum's market dominance still sits above 20% at roughly $ 500 billion. To add, this was double compared to last year's ETH market dominance at just 10%.
Recently, Altcoin Sherpa, a crypto analyst, claimed that it is finally "alt season" and that it has already been going on for the entire year. The tweet also referenced a graph that tracks the overall dominance of the BTC market, suggesting that the current downtrend could continue.
#Altcoins: Mini thread here in 'wen #Season'. The alternate season has been going on for a whole year, you just haven't noticed. Here is the #Bitcoin Dominance graph - You can see that the alts have flourished since January 2021. $ BTC $ ETH pic.twitter.com/c2w1PjHrqV
- Altcoin Sherpa (@AltcoinSherpa) December 23, 2021
Read also: Top 10 Upcoming Crypto Events | Blockchain projects, launches, stakeout and more
Could institutional investments help by putting a floor?
At the moment, it remains to be seen whether institutional investments will help put a floor under the entire dominance metric. To add, in an interview with CNBCNoelle Acheson, Director of Marketing Insights for Genesis Trading, made a statement.
According to Acheson, he was able to see "strong signs" that the growth of certain institutional investments in crypto finally accelerated over the next year. To add, he also noted that the total amount of institutional investment growth as it relates to the crypto space over the course of the last 12 months has been quite "staggering."
Related article: Crypto Watch: Major Cryptocurrencies Return to Fear of Fear and Greed Index
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Written by Urian B.
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