[Bitcoin Now] Market Cap Share Decreased but Altcoins Increased

Market Cap Outside Top 10 Coins' Share
Increased by 2.43 Percentage Points Compared to a Month Ago

Investor Sentiment Revives 'Bottom Theory'

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] The proportion of altcoins in the total cryptocurrency market capitalization has increased compared to last month. On the other hand, Bitcoin dominance, which represents the share of Bitcoin, showed a downward trend. Although the market capitalization share of Bitcoin, which has relatively lower volatility due to the Luna Classic incident and recession concerns, had increased, this trend reversed as investment sentiment toward other coins revived alongside the decline in Bitcoin prices.

According to CoinMarketCap, a global cryptocurrency market tracking site, as of midnight on the 11th, coins ranked outside the top 10 by market capitalization accounted for 16.92%. This marked an upward trend since about a month ago on the 15th of last month, when the share was 14.49%, representing an increase of 2.43 percentage points. Among the top 10 by market capitalization, Solana and Dogecoin also saw their market capitalization shares rise from 1.09% to 1.36% and from 0.79% to 0.95%, respectively.

During the same period, Bitcoin dominance decreased from 45.55% to 43.02%. Compared to the rise to 47.33% on the 13th of last month, this is a drop of 4.31 percentage points. After the Luna Classic incident, Bitcoin dominance, which had been in the low 40% range, began to trend upward. This was because the value of Luna Classic, which was ranked within the top 10 by market capitalization, plummeted in just a few days, causing trust and prices of altcoins to collapse and investment sentiment to contract. As a result, the market capitalization share of Bitcoin, which has relatively low price volatility, recorded an increase.

However, recently, as Bitcoin prices hovered around the $20,000 to $21,000 range, Bitcoin dominance began to decline. As of 11:03 a.m. on the same day, according to CoinMarketCap, Bitcoin’s price was $20,605 (approximately 26.82 million KRW), down 3.93% from the previous day. Additionally, as prices of altcoins, including non-fungible tokens (NFTs), rose, their market capitalization shares also increased.

Investment sentiment in the cryptocurrency market is also showing signs of recovery. According to cryptocurrency data provider Alternative, the Fear and Greed Index, which measures investment sentiment, stood at 22 points on the day. Although it remains in extreme fear, this is an increase of 8 points from 14 points last week and 10 points from 12 points last month.

As investment sentiment revives, bottoming-out theories are emerging one by one. Sam Bankman-Fried, CEO of cryptocurrency exchange FTX, stated, "The cryptocurrency market may have hit bottom," adding, "The drop in Bitcoin prices below $30,000 last month is likely due to macroeconomic factors."