As Crypto Market Stabilizes, Bitcoin’s Share of the Pie Grows

Bitcoin’s share of the crypto universe has steadily increased over the past month, as the original blockchain clawed back market share from lesser known altcoins that made a splash early in the year.

Crypto Market Cap

As of Thursday, bitcoin accounted for 40% of the $441 billion cryptocurrency market, according to data provider CoinMarketCap. That’s the highest level of the year.

Bitcoin’s dominance fell to a record low of 32% after the new year as the crypto market spiked to new highs. It would eventually peak above $830 billion, with dozens more altcoins reaching a valuation of $1 billion or more.

As the following chart illustrates, ether’s share of the total market has also risen over the past five weeks. Ripple’s share has decreased, while bitcoin cash has held relatively steady.

Bitcoin’s dominance has declined sharply over the past year, as investors diversified into a growing pool of alternative tokens promising better value than the original blockchain. At the start of 2017, bitcoin accounted for roughly 90% of the total market cap.

In terms of trade volume, bitcoin is also no. 1 with nearly 40% of the daily turnover. Tether, whose USDT token is supposedly pegged to the dollar, is second at roughly 13.8%. Ethereum is third at 11%.

Bitcoin Price Levels

The cryptocurrency briefly traded above $11,000 on Wednesday, touching a session high of $11,065, according to CCN. However, the gains would quickly dissipate, leaving the coin in the mid-$10,000s.

At press time, BTC/USD was down more than 5% at $10,378, bringing the total market cap to $175.3 billion.

Bitcoin’s rally attempt was rejected at $11,000, which continues to offer firm resistance. This is the level at which speculators are keen to take profits in the absence of notable market developments. However, bitcoin is up more than 75% from last month’s swing low, with the fundamental indicators pointing to greater upside in the medium term.

There has been a notable drop in trade volumes over the past 24 hours, with turnover in the cryptocurrency market reaching $17.2 billion. Bitcoin’s trade volumes amounted to less than $7 billion.

Weakness in the cryptocurrency market is usually accompanied by lower volumes, as holders maintain their long-term positions and speculators refrain from dabbling in the market. It remains to be seen how long these dynamics will last amid a wave of optimism sweeping the market.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Chief Editor to and Contributor to, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi