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Bitcoin Dominance Hits 4-Year High at 64% Amid Economic Uncertainty

Coin WorldFriday, May 2, 2025 8:39 am ET

1min read

Bitcoin’s dominance in the cryptocurrency market has reached a new four-year high, surpassing 64%. This significant milestone underscores Bitcoin’s growing appeal as a safe haven asset amidst economic uncertainty. The metric, which measures Bitcoin’s share of the total crypto market capitalization, highlights a shift in investor preference towards Bitcoin over other major cryptocurrencies.

Bitcoin’s price has been hovering above $96,000, driven by substantial institutional inflows through ETFs and corporate treasury adoption. For instance, Metaplanet’s holding of 5,000 BTC exemplifies the increasing institutional trust in Bitcoin. This trend raises questions about the future of other major blockchain chains such as Ethereum (ETH), Solana (SOL), and Binance Chain (BNB).

Despite a recent 15% surge in Ethereum’s price to $1,800 over the past two weeks, its market dominance remains at a mere 7.4%, the lowest since January 2020. The ETH/BTC ratio stands at 0.115, further emphasizing Bitcoin’s superior performance. Ethereum’s high transaction costs and slower innovation compared to newer layer-1 chains contribute to its underperformance.

Solana and Binance Chain, while gaining traction for their faster transaction speeds, lack the institutional trust that Bitcoin enjoys. Analysts predict that Bitcoin’s dominance may soon reach its peak, potentially leading to an altcoin season as capital rotates to undervalued projects. However, regulatory uncertainty and weak fundamentals in many altcoins could delay this shift.

Currently, Bitcoin’s dominance is stifling the growth of altcoins, as investors prioritize Bitcoin’s proven store-of-value narrative over speculative ventures. Chains like Ethereum and Solana are under pressure to innovate rapidly to avoid losing further ground. Solana’s focus on scalability offers some hope, but without broader adoption, altcoins face a prolonged period of disillusionment. Bitcoin’s reign, supported by influential figures like BlackRock’s Larry Fink and Strategy’s Michael Saylor, suggests that altcoins need compelling use cases to compete effectively.

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