[Bitcoin Now] Increasing Market Cap Share After the Luna Incident

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] After the Luna crash incident, Bitcoin dominance, which is the proportion of Bitcoin in the total cryptocurrency market capitalization, has shown an increasing trend.

According to asset analysis site TradingView on the 28th, as of 5:47 PM, Bitcoin dominance stood at 46.46%. The previous day recorded 46.55%, the highest figure since October 19 last year when it was 47.41%. Bitcoin dominance increases when Bitcoin is more attractive to investors compared to altcoins.

Bitcoin dominance has continued to rise since the Luna incident. Until early this month, it recorded levels of 41-42%, and on the 10th, it was 41.83%. However, as Luna’s price plummeted from the $30 range to the $2 range on the 11th of this month, it rose to 43.58%, and on the 12th, it surged to 44.44%.

Although Bitcoin’s price also declined due to the Luna incident, altcoins fell more sharply, which is interpreted as the reason for the increase in Bitcoin dominance. According to the global cryptocurrency market status relay site CoinMarketCap, Bitcoin’s price, which was in the $30,000 range on the 25th, dropped to $28,854 (approximately 36.24 million KRW) as of 5:21 PM on the same day, down 0.75% from the previous day. Ethereum, the leading altcoin, fell from the $2,000 range to $1,761 during the same period. During this time, Bitcoin’s price dropped about 3.8%, while Ethereum plunged nearly 12%.

Meanwhile, Dunamu, which operates the domestic cryptocurrency exchange Upbit, reported its Digital Asset Fear & Greed Index at 30.19 on the same day, indicating a 'Fear' stage. Compared to 26.90 (Fear) the previous day, it rose by 3.29. Dunamu’s Digital Asset Fear & Greed Index is divided into stages of 'Extreme Fear (0?20)', 'Fear (20?40)', 'Neutral (40?60)', 'Greed (60?80)', and 'Extreme Greed (80?100)'. The greed direction means increased interest in buying among market participants, whereas the fear direction leads to market exits due to fear of asset decline, causing a chain reaction of price drops.