The recent rise in Bitcoin dominance indicates that it has re-emerged as the most dominant cryptocurrency in the market. This is evidenced by its overall market capitalization reaching above $122 billion and its overall share of the crypto market reaching a two-year high of 49%.
The main cause for this surge in dominance can be attributed to a few key factors. Firstly, there is a strong sentiment within the crypto investor community that Bitcoin will continue to appreciate in value over the long term while the value of other, more speculative altcoins may falter. Secondly, as institutional investors continue to come into the crypto space, Bitcoin is seen as a secure, long-term investment option with a greater potential for appreciation than any of its peers. Finally, new technology platforms are being built upon Bitcoin’s blockchain network, such as the Lightning Network, which are providing new real-world use cases for the cryptocurrency and increasing its utility.
Overall, the recent surge in Bitcoin’s popularity is good news for the crypto market as a whole as it demonstrates that investors are again beginning to recognise the numerous benefits that it can offer when it comes to storing value and engaging in secure peer-to-peer payments.