Bitcoin dominance — bitcoin’s share of the total cryptocurrency market capitalization — has been in freefall in the second half of this month after hitting year-to-date highs in mid-September.
Bitcoin’s contribution to the total cryptocurrency market capitalization has dropped to just above 50%, down from almost 60% earlier in the month (according to CoinMarketCap data), as other major cryptocurrencies experience a revival, boosted by big wins for ripple (XRP), bitcoin cash, and litecoin.
In August, bitcoin dominance hit 50% for the first time this year, after beginning 2018 at some 37%, as many of the so-called altcoins that had surged throughout 2017 were heavily sold off.
Bitcoin currently has a market cap of $117 billion, down from $127 billion at the beginning of the month. Meanwhile, other major cryptocurrencies have made significant gains as a wave of positive announcements rejuvenated trader and investor sentiment.
Despite the bitcoin price ticking up by almost 5% over the last 24 hours to some $6,700, it has not been enough to erase bitcoin’s loses for September — which saw bitcoin climb to over $7,250.
The latest bitcoin price bump was sparked by a Bloomberg report suggesting a significant “positive price movement” is on the horizon — based on analysis of RIG trend lines, a leading technical indicator that is a combination of the RSI and momentum studies.
However, much of the excitement over the summer that institutional money was about to be poured into bitcoin and cryptocurrencies has ebbed in September.
The U.S. Securities and Exchange Commission further delayed its approval decision on a closely watching bitcoin exchange-traded fund (ETF) proposal earlier this month and U.S. investment banking giant Goldman Sachs appeared to somewhat back off from plans to offer bitcoin products to its clients.
Many are still hopeful the SEC will eventually approve a bitcoin ETF and are also looking forward to the launch of a bitcoin and cryptocurrency platform called Bakkt, in November — created by New York Stock Exchange owner ICE in partnership with coffee chain Starbucks, software giant Microsoft, and Boston Consulting Group.
Elsewhere, the ripple (XRP) price surged as details of a new product launch that will see XRP used directly by some banks sending money across borders led to a more than 100% uptick to ripple’s price.
Ripple’s percentage of cryptocurrency market share leapt from 5% to 10% in September.
Earlier this week ripple briefly overtook ethereum as the world’s second largest cryptocurrency by total market capitalization for the second time this month before falling back. Both ripple and ethereum are battling it out for the second spot, each with a market cap of around $22 billion.
Both ripple and ethereum have fallen back sharply from their peaks at the turn of the year, though ripple’s recent surge has meant it has made up ground on ethereum. Ethereum’s percentage of cryptocurrency market capitalisation has been falling consistently throughout 2018 after peaking at 21% — and is now around 10%.
Bitcoin cash was boosted from Bitmain’s delayed initial public offering (IPO) proposal, finally filed in Hong Kong this week, and litecoin rose in value after it was yesterday announced SFOX, a cryptocurrency prime dealer for high-volume traders and institutional investors, it added litecoin trading support.
Bitcoin cash’s percentage of cryptocurrency market capitalisation climbed from 3% to 4% this week.
This fall in bitcoin’s total share of the cryptocurrency market cap could be short lived, however. There has over recent months been multiple reports of influential investors calling a bottom to the bitcoin price — predicting we’re about to see a return to the price peaks at the end of last year which saw bitcoin reach highs of almost $20,000 per coin.