Bitcoin’s market dominance has declined to 52%, marking a potential shift in investor sentiment towards alternative cryptocurrencies (altcoins). This drop suggests capital is rotating from the leading digital asset into the broader altcoin market.
The Altcoin Season Index, a key metric gauging market rotations, has risen significantly from 26 to 37, reinforcing evidence of increased interest and activity within the altcoin sector.
Leading the charge, Ethereum has gained 9% over the past week and is currently trading near $3,937. Other major altcoins, including XRP, Cardano, and Stellar, have also recorded notable price increases.
Ethereum’s own market dominance has climbed to 11.9%, underpinned by substantial trading volumes and on-chain activity hitting its highest level in a year.
Market analysts suggest that Bitcoin maintaining an overall upward price trajectory even as its dominance diminishes could signal sustained growth potential for altcoins in the current cycle.