Bitcoin dominance ratio soars to almost 60%
Share link:In this post: Bitcoin’s dominance ratio reached nearly 60% in August. Increased interest from major financial firms contributed to BTC’s recovery from the 2022 bear market. Solana’s dominance ratio more than tripled from 0.78% to about 3% this year.
Bitcoin’s dominance ratio surged to nearly 60% in August, driven by a significant increase in the crypto’s value. Year-to-date, BTC’s value has risen by about 51%, adding nearly $450 billion to its market cap despite fluctuations in price. Glassnode data highlights that long-term Bitcoin holders remain resolute, continuing to accumulate and retain their coins.
These steadfast investors continue to accumulate and hold onto their coins, with data showing that “HODLing behavior is significantly outpacing spending behavior.”
Bitcoin achieves a historic peak in dominance
The last time BTC’s dominance ratio exceeded 60% was in February 2021. Despite an outstanding 160% gain in 2023ᅳthree times more than its price growth in the previous eight monthsᅳBitcoin’s dominance ratio was lower compared to this year.
The boost in institutional interest from major financial firms such as BlackRock and Fidelity played a crucial role in Bitcoin’s recovery from the 2022 bear market. Still, its dominance ratio remained above 50% only intermittently last year.
According to Statista , Bitcoin’s dominance ratio was at 40% in January 2023, with altcoins holding around 60% of the market. Even though Bitcoin’s price surged, its dominance ratio only increased by 5% over the next four months, reaching 50% in October before slipping to 47% by December.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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