The cryptocurrency market is showing signs of a potential shift, with altcoins gaining momentum as Bitcoin’s dominance continues to decline. According to reports from Santiment and Bitfinex analysts, several key factors are driving this change.
Altcoins like Decentraland, The Graph, and Aave are positioned to experience significant price jumps, while Bitcoin’s decreasing dominance suggests that the broader market may soon favour altcoins over the leading cryptocurrency.
Growing Strenght of the Altcoin Market
Santiment emphasised these altcoins’ increasing dominance in the top 100 market capitalisations. Notable short ratios have been observed for Decentraland (MANA), The Graph (GRT), and Aave (AAVE) on significant exchanges such as Binance.
This pattern suggests that token prices may rise as a result of liquidations, particularly if the cryptocurrency market keeps rising. These altcoins offer potential for both traders and investors, so it’s important to keep a careful eye on them.
The analysts at Bitfinex also discussed their predictions for the cryptocurrency industry, with a special emphasis on Bitcoin’s leadership and how it would affect the performance of other cryptocurrencies.
The percentage of BTC in the whole cryptocurrency market, or its market dominance, has been gradually dropping. According to data from CoinMarkerCap, Bitcoin’s dominance as of the time of publication is 56.3%.
According to Bitfinex experts, if macroeconomic conditions improve, cryptocurrencies may soon surpass Bitcoin in value. This might be caused by both a resurgence of interest in cryptocurrencies and speculative weariness in Bitcoin.
Many traders and analysts view this move as a major sign that the cryptocurrency market is about to enter a new phase when altcoins start to take centre stage, as the market capitalisation of altcoins continues to rise.
Bitcoin’s Market Control Going Down?
Into The CryptoVerse founder Benjamin Cowen has commented on Bitcoin’s ascendancy, speculating that it might not be long until Bitcoin makes its “final move” in terms of controlling the market.
He highlights the possibility that the market may be about to undergo a sea change due to Bitcoin’s dominance. Altcoins may take the lead in driving market expansion if Bitcoin’s hegemony continues to erode.
The dynamics of the cryptocurrency market may shift significantly as a result of Bitcoin’s declining dominance and altcoins’ growing resilience. Investors and analysts are closely monitoring the possible improvement in the macroeconomic situation as well as the growing liquidity of altcoins like Decentraland, The Graph, and Aave.