{"id":17705,"date":"2025-03-18T23:15:49","date_gmt":"2025-03-18T23:15:49","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=17705"},"modified":"2025-03-18T23:15:49","modified_gmt":"2025-03-18T23:15:49","slug":"btc-dominance-steadily-rising-since-2023-is-altseason-now-a-relic","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=17705","title":{"rendered":"BTC dominance steadily rising since 2023, is altseason now a relic?"},"content":{"rendered":"
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\"BTC<\/p>\n

Bitcoin (BTC<\/a>) dominance, a measure of Bitcoin’s overall share of the crypto market, has been steadily rising since 2023 amid a torrent of new cryptocurrency coins and tokens.<\/p>\n

The current BTC market dominance is roughly 61.6%, down from the local peak of 64.3% recorded on Feb. 3.<\/p>\n

BTC market dominance broke back above 60%<\/a> on Feb. 2 amid a general market downturn over fears of a prolonged trade war<\/a> between the United States and its trading partners.<\/p>\n

Macroeconomic uncertainty typically takes a toll on risk-on assets, and the recent market downturn hit altcoins harder than BTC due to their lower liquidity and higher-risk profiles.<\/p>\n

\"Cryptocurrencies,
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Bitcoin market dominance has been rising since 2023. Source: <\/em>TradingView<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

The current market cycle also features Bitcoin exchange-traded funds (ETFs), which silo liquidity into these financial instruments \u2014 preventing capital rotation into altcoins<\/a>, which crypto traders and investors have become accustomed to.<\/p>\n

Previous cycles were characterized by investors rotating profits from less risky assets such as BTC into progressively higher-risk investments, starting with high market cap altcoins and eventually working their way into smaller cap tokens.<\/p>\n

The liquidity siloed in traditional investment vehicles coupled with the proliferation of new coins and tokens<\/a> competing for limited investor attention and capital has led some analysts to suggest that altcoin season is now a thing of the past and will not be a feature of the current or future market cycles.<\/p>\n

Related: <\/strong><\/em>Bitcoin poised to reclaim $90,000, according to derivatives metrics<\/strong><\/em><\/a><\/p>\n

Too many tokens have saturated the market<\/h2>\n

The total number of cryptocurrency tokens and coins listed<\/a> on CoinMarketCap on Feb. 8 was below 11 million unique assets<\/a>, as of March 15 the number of digital assets listed on the website has surged to over 12.7 million.<\/p>\n

\"Cryptocurrencies,
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Tens of millions of unique digital assets are now floating around the markets. Source: <\/em>Dune<\/em><\/a><\/p>\n<\/figcaption><\/figure>\n

Over 600,000 tokens were launched in January 2025<\/a> alone. The vast majority of these assets were memecoins created on fair launch platforms and low-cap altcoins.<\/p>\n

According<\/a>\u00a0to market analyst Jesse Myers, when these coins fail, they do not go to $0. Instead, they linger around market capitalizations of $10,000 to $100,000 \u2014 permanently trapping capital inside illiquid pools.<\/p>\n

The proliferation of new tokens and digital assets prompted Coinbase CEO Brian Armstrong to reevaluate the exchange’s token listing process<\/a> to meet consumer demand.<\/p>\n

Magazine: <\/strong><\/em>DeFi will rise again after memecoins die down: Sasha Ivanov, X Hall of Flame<\/strong><\/em><\/a><\/p>\n

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.<\/p>\n