Bitcoin has been on a spectacular run over the past three months, capping off 2024 with an impressive 125% gain, while the rally continues into 2025.
The world’s largest crypto hit a record $108,000 on January 20 before closing the month with a solid 6% increase. This strong performance and its triple-digit price gain have propelled Bitcoin’s market dominance to new highs, pushing it way above levels seen last year.
According to data presented by CryptoPresales.com, Bitcoin’s dominance ratio hit nearly 61.5% last week, marking the highest share since February 2021.
Market share jumps 10% in a year
As one of the oldest metrics in the crypto industry, the dominance ratio measures the coin’s market cap in relation to the total cryptocurrency market.
In Bitcoin’s case, it shows how the world’s largest cryptocurrency stands compared to altcoins. However, it also reflects trading sentiment, showing whether Bitcoin holds ground against stablecoins, or NFT-driven assets.
Bitcoin’s dominance ratio has seen sharp fluctuations over the years. After standing at around 95% in 2016 and 2017, when cryptos were still far away from wider adoption, it plunged to 55% in 2018. A year later, it skyrocketed to over 70% again.
The Tradingview data show that 2020 saw a similar BTC market share, but by 2021 and 2022, it had dipped below 50%. This trend persisted until October 2023, when Bitcoin’s market share began climbing again.
In 2024, things changed, with key developments propelling digital currencies to new heights.
Regulatory clarity in major markets, the approval of Bitcoin spot ETFs, advancements in blockchain technology, and the growth of decentralised finance (DeFi) fueled both institutional and retail adoption, further boosting Bitcoin’s market share.
By the end of the year, the BTC dominance ratio jumped to 57% and then skyrocketed to 61.5% in the past month and a half, showing a strong 10% increase in a year and reaching the highest level in four years.
XRP surges, ETH plunges
The Tradingview data show Bitcoin wasn’t the only cryptocurrency to experience significant market share gains.
XRP also saw a meteoric rise, nearly tripling its dominance from 1.66% in February last year to 4.5% last week. Solana’s market share increased by 0.5% to 3.1% in this period, showing a steady but less dramatic growth.
On the other hand, the world’s second-largest cryptocurrency by market cap, Ethereum, continues losing its market share.
Last week, ETH accounted for only 10.2% of the total crypto market value, 7% less than in the same month a year ago, and only half its market share peak from September 2022, when the coin held around 20% of the market.
