Glassnode Report: Bitcoin's Market Dominance Rises to 56%, Altcoins Led by Ethereum May Face Greater Challenges
ChainCatcher message, Glassnode's latest report shows that Bitcoin's market dominance has risen to 56% of the total cryptocurrency market capitalization, a significant increase from 38.7% in November 2022. Despite recent price volatility, long-term holders remain steadfast in accumulating Bitcoin. Data indicates that the "HODL" behavior significantly outweighs the "spending" behavior, especially for Bitcoin acquired after reaching an all-time high in March 2024.
Ben El-Baz, Managing Director of HashKey Global, stated that this trend reflects increased confidence among mainstream investors, who are more inclined to choose Bitcoin as a stable investment rather than more volatile altcoins like Ethereum. However, short-term holders are facing unrealized losses, with the STH-MVRV ratio dropping below the equilibrium value of 1.0. Experts point out that the rise in Bitcoin's dominance could stimulate growth across the entire cryptocurrency market.
It is noteworthy that Ethereum's dominance has decreased from 16.8% to 15.2%, while other altcoins have seen even larger declines, dropping from 27.2% to 21.3%. Industry insiders expect that altcoins like Ethereum may face greater challenges between 2024 and 2025.