Bitcoin dominance declines as altcoins bring $50 billion into the market in 48 hours

The crypto market observed significant profits in the past two days as many altcoins registered considerable growth. This increase had an impact on the biggest cryptocurrency in the world as Bitcoin’s dominance took a hit. Going forward, a similar development might take center stage as investors are preparing for further increases.

Altcoins make a dent

The total crypto market capitalization, excluding Bitcoin, grew by 6.83% in the last 48 hours, bringing in $48.66 billion. Digital assets, including Solana, Optimism, and more, noted increases ranging from 14% to 31% in just a day.

This is largely due to the accumulation observed in the last few weeks, which has resulted in tens of millions of dollars worth of assets moving away from exchange wallets. Ethereum, Shiba Inu, Fetch, and Dent emerged as the largest coin-offloading exchange wallets. In the last three months, $778 million worth of ETH, $54.6 million worth of SHIB, and about $48 million worth of FET have exited the exchange wallets.

Top altcoins exchange wallet 

This is hinting at a long-term increase in price, which makes sense since the market is pretty bullish at the moment. The Crypto Fear and Greed Index is exhibiting greed in the market. Generally, long periods of greed tend to result in corrections induced by sell-offs by investors attempting to book profits.

Crypto Fear and Greed Index

However, considering the crypto market is actually awaiting stronger bullish cues, the altcoin will not be seeing any major decline anytime soon.

Bitcoin loses dominance

The impact of the altcoins taking a lead on Bitcoin is not very positive. Bitcoin dominance shows the overall percentage of the market captured by the world’s biggest crypto asset. Whenever this dominance increases, the altcoins tend to lose their influence in the market, but an increase in altcoins’ value causes BTC to lose its dominance.

The latter is considered the signal of altcoin season, which at the moment is far from taking place anytime soon. That said, Bitcoin dominance did take a hit on Thursday as dominance fell to 53% after failing to breach 54%. 

Bitcoin dominance

However, the decline is not significant enough to suggest a change in trend or the bullish narrative changing hands since BTC is holding center stage presently owing to the upcoming spot ETF approval.