Bitcoin News Today: Bitcoin dominance drops to 52 as altcoins gain 9%-11% in one week

Bitcoin’s dominance in the cryptocurrency market has fallen to 52% as of August 9, 2025, marking a notable shift in investor preferences toward Ethereum and other major altcoins [1]. This decline reflects a broader trend of capital reallocation from Bitcoin into alternative digital assets, which have shown strong momentum and key technical breakouts in recent weeks. The total market capitalization of the crypto sector stands at approximately $3.92 trillion, with Ethereum and other large-cap altcoins showing signs of sustained upward movement [2].

Ethereum has been one of the primary beneficiaries of the declining Bitcoin dominance. The second-largest cryptocurrency by market capitalization has gained 9% over the past week, trading near $3,937. Its dominance share has risen to 11.9%, driven by increased trading volume and on-chain activity [1]. Ethereum’s performance has been supported by ongoing ecosystem developments, including upgrades and growing adoption in decentralized finance (DeFi) applications [2]. Analysts note that Ethereum breaking above the 200-day moving average is a bullish signal for traders and investors [3].

Other major altcoins have also seen significant price gains. XRP, Cardano, and Stellar have all posted double-digit increases in the past week, with Cardano up 9.6% and Stellar up 11%. These movements indicate a broader shift in market sentiment, with investors showing renewed interest in altcoin projects that offer real-world utility and technological innovation [1]. Altcoin deposits on major exchanges have surged to a one-year high, with over 45,000 recorded in a single week, further reinforcing the growing enthusiasm for non-Bitcoin assets [2].

The Altcoin Season Index, a gauge of investor sentiment toward altcoins relative to Bitcoin, has advanced from 26 to 37 within a month, reflecting a growing preference for altcoin exposure [1]. This index, which measures the market activity and inflows into altcoins, suggests that the current bull phase may favor a more diversified crypto portfolio. Analysts have noted that a further decline in Bitcoin’s dominance, particularly below the 60% threshold, could accelerate altcoin rallies while Bitcoin continues its upward trajectory [3].

The decline in Bitcoin dominance is not an isolated event but part of a recurring pattern observed during bull cycles in the cryptocurrency market. Historically, Bitcoin has ceded market share to altcoins as innovation and adoption in the sector expand. This time, however, the shift appears to be driven by tangible developments in DeFi, cross-chain interoperability, and real-world use cases that extend beyond speculative trading [2]. As such, the current market dynamics reflect a more mature and diversified crypto ecosystem.

Despite the positive momentum, investors are cautioned to remain cautious. While the trend favors altcoins, the crypto market remains highly volatile and subject to rapid changes. Due diligence and risk management remain essential for any investment strategy. As the market continues to evolve, it is likely that Bitcoin and altcoins will coexist in a more balanced structure, with each serving distinct roles in the broader digital asset landscape [1].

[1] https://en.coinotag.com/bitcoin-dominance-declines-to-52-as-ethereum-and-altcoins-show-potential-for-growth/

[2] https://www.tradingnews.com/news/ethereum-price-breaks-4200-usd

[3] https://www.ainvest.com/news/ethereum-news-today-cardano-tests-key-resistance-ethereum-struggles-altcoin-sentiment-warms-2508/