Critics of Bitcoin are claiming that BTC is now losing its first-mover competitive advantage. With that, a lot of people are anticipating "alt season" being around the corner or could already be underway.
Bitcoin Market Dominance Falls Below 40%
The market dominance of BTC is still continuing to fall, finally bottoming out just shy of 40%. This was just close to its all-time low back in January 2018 at 36.7%, as per the data from TradingView.
The Bitcoin market dominance refers directly to Bitcoin's market cap ratio compared to the total crypto market cap in general. To add, this isn't really the first time that BTC has dipped in market cap in the past.
Last Time BTC Dipped in Market Cap
According to the story by CoinTelegraph, back in May, BTC had reportedly dipped down to just 40.3% of the combined crypto asset capitalization as seen on CoinMarketCap. Bitcoin also went near the same level back in September as well.
Peter Schiff, a Bitcoin critic, and Europac chairman, said on Twitter that BTC is going to lose its first-mover competitive advantages. To add, Schiff said that with more than 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 cryptos with virtually identical properties," BTC will be losing its competitive advantage.
With over 16,000 alternative cryptos to choose from Bitcoin's market dominance is now below 40% for the first time since June of 2018. With an unlimited supply of easily created cryptos with virtually identical properties, #Bitcoin is losing its first-mover competitive advantage.
— Peter Schiff (@PeterSchiff) December 28, 2021
Dominance of Ethereum
Ethereum's market dominance is still sitting above 20% at about $500 billion. To add, this was double compared to ETH's market dominance last year at just 10%.
Just recently, Altcoin Sherpa, a crypto analyst, claimed that it is finally "alt season" and has already been underway for the whole year. The tweet also referenced a chart tracking BTC's total market dominance, suggesting that the current downward trend could continue.
#Altcoins: Mini thread here on 'wen #Altseason'. Alt season has been going on for an entire year, you just haven't noticed it. Here's the #Bitcoin dominance chart- you can see alts have flourished since January 2021. $BTC $ETH pic.twitter.com/c2w1PjHrqV
— Altcoin Sherpa (@AltcoinSherpa) December 23, 2021
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Could Institutional Investments Help by Putting a Floor?
As of the moment, it still remains to be seen as to whether institutional investments will be helping in order to put a floor under the whole dominance metric. To add, in an interview with CNBC, Noelle Acheson, the head of marketing insights for Genesis Trading, gave a statement.
As per Acheson, she could see "strong signs" of certain institutional crypto investments growth finally accelerating throughout the next year. To add, she also noted that the total amount of institutional investment growth when it comes to the crypto space over the course of the last 12 months has actually been quite "astonishing."
Related Article: Crypto Watch: Top Cryptocurrency Drops Back to Fear on Fear and Greed Index
This article is owned by Tech Times
Written by Urian B.
