The recent decline in Bitcoin's dominance in the cryptocurrency market has paved the way for the rise of altcoins such as Dogecoin and XRP. Experts share insights on the impact of new structural changes on the market.
Falling Bitcoin Dominance
As of today, Bitcoin's market dominance has reached a 12-day low. In this context, altcoins including Dogecoin and XRP are becoming more prominent against the backdrop of the leading cryptocurrency's weakened position.
Market Changes
Gerry O'Shea, head of global market analysis at crypto asset manager Hashdex, noted that while the situation could replicate previous cycles, it would not be as severe. He links this to changes in the market brought about by exchange-traded funds (ETFs) and institutional buying in the US. "There are institutional buyers supporting this process right now," O'Shea added. He suggests that Bitcoin's volatility will continue, but this cycle will be different from prior periods.
Conclusions and Predictions
O'Shea also argues that past altcoin seasons were driven by speculative investments, such as NFTs and memecoins. However, with regulatory advancements and the passage of stablecoin laws in the US, investors may now be more inclined toward projects offering greater potential. "Smart contract platforms like Ethereum and Solana that provide stablecoin infrastructure are currently showing benefits," he added, highlighting this as a significant factor in Bitcoin's dominance decline.
The decline of Bitcoin's dominance opens new opportunities for altcoins, and expert opinions point to market structure changes and potential shifts in investor behavior.
