Bitcoin Dominance Index drops below 50%
22.04.2021 | auglovoi
For the first time since 2019, bitcoin’s dominance on online exchanges fell below 50%. Normally, this marks the beginning of “altcoin season,” that we have seen in recent days. While the price of the first cryptocurrency has lost more than 20% in the past five days, breaking the psychological threshold below $50,000, popular cryptocurrencies have only fallen 10%-15%. Ethereum lost only 11% in the same week, but has already set a new historical record in the last 24 hours.
Also the increase in interest in alternative cryptocurrencies can be seen in the change in price since the beginning of the year. While bitcoin gained only 90%, setting a historical high above $64 000, ethereum managed to add 250%, also setting a record. The last high price was above $2 600, but the rise was quickly corrected.
Perhaps the interest in alternative cryptocurrencies was driven by increased transaction fees online. Transferring relatively small amounts, it simply became unprofitable, and those who use digital assets as a means of payment switched to currencies from the second tier.