Bitcoin’s dominance in the crypto market is on the rise, and it’s making waves! Since the start of 2023, Bitcoin (BTC) has been flexing its muscles, capturing a larger share of the crypto pie amidst a flood of new coins and tokens. As of now, BTC’s market dominance stands at around 61.6%, slightly dipping from its recent peak of 64.3% on February 3rd.
The surge above 60% on February 2nd came during a market slump triggered by fears of a prolonged trade war between the United States and its trading partners. In times of economic uncertainty, riskier assets like altcoins tend to take a hit, while Bitcoin stands firm, thanks to its higher liquidity and lower risk profile.
Adding fuel to Bitcoin’s fire are the Bitcoin exchange-traded funds (ETFs), which are soaking up liquidity that might otherwise flow into altcoins. In previous cycles, investors would rotate their profits from Bitcoin into high market cap altcoins and eventually into smaller tokens. But this time, things are different.
The rise of Bitcoin ETFs and the explosion of new coins and tokens have led some analysts to believe that the legendary “altseason” might be a thing of the past. With so many digital assets competing for attention and investment, the days of altcoin dominance could be over.
The crypto landscape is more crowded than ever. As of March 15th, over 12.7 million unique digital assets were listed on CoinMarketCap, up from just under 11 million in early February. In January 2025 alone, more than 600,000 new tokens were launched, many of them memecoins and low-cap altcoins.
Market analyst Jesse Myers points out that when these coins fail, they don’t just vanish. Instead, they linger with market capitalizations ranging from $10,000 to $100,000, tying up capital in illiquid pools. This proliferation has even prompted Coinbase CEO Brian Armstrong to reconsider the exchange’s token listing process to better serve consumer demand.
While Bitcoin continues to strengthen its grip on the market, the future of altcoins remains uncertain. As the crypto world evolves, enthusiasts and investors alike are left wondering if the golden age of altcoins is truly over or if a new chapter is about to unfold.
Remember, this article is not investment advice. Every move in the crypto world carries risk, so always do your own research before diving in!
