Altcoin Exchange Dominance Rises To 50%, What Does It Mean For Bitcoin?
24 Octubre 2022 - 2:00PM
NEWSBTC
Data shows the altcoin dominance by volume on exchanges has now
risen to 50%, here’s what happened to Bitcoin the last two times
the crypto market saw such a shift. Altcoins Are Now Contributing
To 50% Of The Volumes On Exchanges As pointed out by an analyst in
a CryptoQuant post, altcoins have started to dominate after Bitcoin
was number one for an entire month. The relevant indicator here is
the “trading volume,” which is a measure of the total amount of
coins being traded on centralized exchanges. The percentage to this
total trading volume being contributed by an individual crypto is
called its “dominance by volume.” Here is a chart that shows how
the Bitcoin, Ethereum, and altcoin dominances have stacked up
against each other during the last month: The value of the metric
seems to have declined for BTC in recent days | Source: CryptoQuant
As you can see in the above graph, Bitcoin had the largest
individual share for much of the past month, but that has changed
during the last few days. BTC’s dominance of the trading volume
dropping off has given more room to the altcoins, who now
contribute to around 50% of the volumes on exchanges. Related
Reading: Bitcoin Bearish Signal: Dormant Supply On The Move Again
As for Ethereum, the crypto’s volume hasn’t observed any
significant shifts recently, with the coin’s dominance moving
sideways just below the 30% mark. During the past year, there have
been two stretches where altcoins have enjoyed a similar dominance.
The below chart shows how the price of Bitcoin behaved while these
periods lasted. Looks like the altcoin dominance reached as high as
60% during these stretches | Source: CryptoQuant From the graph,
it’s apparent that the first of these altcoin dominated periods
occurred back between November 2021 and January 2022. At the start
of this timespan, the price of Bitcoin was around $67k, but by the
end of it the crypto had declined to just $36k. The second spell of
high altcoin volume took place between April and June of this year,
and much like the in first stretch, BTC observed a significant
drawdown as its price went from $47k all the way down to $20k.
Related Reading: TOP 5 Cryptos To Watch This Week – BNB, BTC, ETH,
MATIC, APT If the altcoins continue their recent surge in trading
dominance on exchanges, and a similar trend as during these
previous instances follows now as well, then it may prove to be
troubling times for Bitcoin. Bitcoin Price At the time of writing,
Bitcoin’s price floats around $19.3k, down 1% in the last week.
Over the past month, the crypto has gained 1% in value. BTC
continues to be stuck in consolidation | Source: BTCUSD on
TradingView Featured image from Traxer on Unsplash.com, charts from
TradingView.com, CryptoQuant.com
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