While the wider cryptocurrency market has actually been consolidating greatly just recently over the last few weeks, we have seen an interesting trend in the market. Bitcoin (BTC) continues to move sideways as its general dominance in the crypto area drops under 40%.
On the other hand, a few of the altcoins tasks have been truly revealing strength for e.g. Terra (LUNA), Polygon (MATIC), Chainlink (LINK), avalanche (AVAX), and so on. This as soon as again brings us to the olden debate of whether if Bitcoin is losing its grip over the marketplaces to drive the momentum single-handedly.
If we see at the Bitcoin supremacy chart below, we can clearly note that it has actually been on a declining pattern since the beginning of 2021. In reality, the Bitcoin market dominance is reaching close to the lows of 2018.
Courtesy: Coinmarketcap On the other hand, altcoins like Ethereum (ETH)and others have been extending their market dominance. In one of his recent tweets, popular crypto analyst Lark Davis composes:
There are really a lot of #altcoins revealing excellent strength in spite of #bitcoinlooking unfortunate. The more the industry grows the less effect BTC will have on alts.
The Growth of the Altcoin Market
Formerly, around 2017-2018, the movement in the altcoin market was greatly depending on the movement of Bitcoin (BTC). Significance, Bitcoin had a heavy influence on the altcoin market rally which is now changing!
Over the last couple of years, we have actually seen some strong altcoin jobs with extensive blockchain innovation coming to the market. Besides, the fast market growth of decentralized financing (DeFi), DEXs and NFTs some good projects like Solana, Avalanche, etc into the spotlight.
On the other hand, we have projects like Chainlink (LINK) that solve an important problem of information transfers across blockchains. Then we have jobs like Terra (LUNA) that attend to the stablecoin liquidity requirement for DeFi.
In general, the altcoin space is broadening across crucial market options which is why the interest in altcoins is growing with time. While numerous see Bitcoin (BTC) as a shop of value, the altcoin tasks assist in tapping into new technology options.
The post With Bitcoin Dropping and Altcoins Gaining, Is the Crypto Market Less Dependent on BTC? appeared initially on CoinGape.