Daily Outlook

Bitcoin Dominance Slides to 12-Month Low

Bitcoin’s (BTC) dominance relative to altcoins has fallen to its lowest point in 12 months, with the leading cryptocurrency representing 61% of the $359.5 billion combined cryptocurrency capitalization. Bitcoin’s dominance has slid from over 67% as of mid-May, and is down from a local high of 69.9% during September of last year — the strongest moment for BTC dominance since the first quarter of 2017.

Despite the strength of Bitcoin’s July rally into five-figure prices, the month saw the combined capitalization of altcoins tag $140 billion for the first time in 24 months. Binance’s July trading report also shows renewed strength in the altcoin markets, with altcoins growing from roughly 32% to represent 40% of volume on Binance Futures. Binance attributed the strong performance of altcoins to the growing popularity of Ethereum-based decentralized finance (DeFi) protocols and Ether (ETH) accumulation in anticipation of ETH staking.

July saw the value of assets locked in DeFi double from $2 billion to $4 billion. According to CoinMarketCap, the 10-largest DeFi tokens represent a market cap of roughly $7 billion. The top-10 DeFi tokens all comprise top 50 crypto assets.

Bitcoin Dominance Slides to 12-Month Low as Crypto Market Cap Tests Resistance, CoinTelegraph, Aug 7

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