Bitcoin’s Market Dominance Hits 57%, Highest Since April 2021
While major cryptocurrencies like bitcoin and others exhibited minimal movement, the Solana token (SOL) surged by a notable 5% to $173, marking a significant increase in market gains. This surge led to an impressive 14% rise over the week.
Bitcoin’s Market Dominance: A Shift in Investor Sentiment?
As of this week, bitcoin’s market dominance has reached over 57%, its highest level since April 2021. This indicates that investors are preferring the stability and established nature of bitcoin over altcoins, which often come with higher risks.
Dominance is a key metric used to gauge market sentiment, where it refers to the ratio between the market capitalization of BTC to the total market capitalization of all cryptocurrencies combined. High dominance levels can signal that bitcoin is leading the market, while decreased dominance might indicate investors are moving their capital into altcoins, potentially signaling the start of an ‘altcoin season.’
Ethereum Continues to Lose Market Share
As reported by Alex Kuptsikevich, senior market analyst at FxPro, "Ethereum continues to lose market share to bitcoin and other altcoins. As a result, BTC’s share of all cryptocurrency capitalization has risen to 57.3%, the highest since April 2021." However, this does not necessarily mean an upward trend for the top cryptocurrency.
Bitcoin’s Price Action: A Potential Rebound or Correction?
Kuptsikevich warned that "the price is now close to a local support level at $66.8K. A break of this support will open the way for a deeper correction to $65.5K, near the 61.8% retracement level from the last rally and the late September top."
Solana’s SOL Surges: The Memecoin Effect
SOL jumped 5% to $173 in the past 24 hours, extending weekly gains to 14%. This price surge was also accompanied by a record high against ether. Network-based memecoins like POPCAT (POPCAT), BONK, and GOAT rose as much as 70%, driven by an increase in network volumes and trading activity.
The Solana ecosystem has become a hotbed for trading activity due to its engaged community and prevalence of small-cap trading, where frenzied memecoins often trend for a few weeks. This can have a positive impact on SOL prices.
AI-Themed Memecoins: A New Wave in Trading Narratives?
Artificial intelligence-themed memecoins are currently driving trading narratives on the network. Projects claiming to have AI tools are fueling this trend, pushing revenues and token issuances on platforms like Pump to record highs earlier this week.
Activity Levels: Strong Demand for Solana
Active addresses grew to 85,000, with 37,000 being new wallets. This indicates strong demand for Solana. A Pump-connected fee account sold over $6 million worth of SOL late Monday, taking its lifetime sales to over $78 million or 500,000 SOL.
New Token Issuances: A Record High
Over 40,000 new tokens were created on the Solana network in the past 24 hours. This surge is driven by the popularity of memecoins and highlights the ecosystem’s growth and adoption.
