Bitcoin Domination Rises in Solid Q2 Performance, Altcoin Struggles
Bitcoin has performed strongly in the second quarter of 2023, gaining market dominance against struggling altcoins, according to industry report CoinGecko. Despite market fluctuations, Bitcoin (BTC) and Ether (ETH) continued to build on their gains from Q1, while other major altcoins, such as Binance Coin (BNB), XRP, and Cardano (ADA), saw double-digit losses.
CoinGecko attributes the significant losses of BNB and ADA to their classification as securities in the lawsuits filed by the Securities and Exchange Commission against Binance and Coinbase. Decentralized finance (DeFi) tokens, including Uniswap (UNI), Chainlink (LINK), and Lido (LDO), also took a hit during the quarter, suffering double-digit losses.
Metaverse and play-to-earn tokens, such as Axie Infinity (AXS), Sandbox (SAND), and Decentraland (MANA), also saw losses of up to 40%. This downward trend led to an increase in Bitcoin’s dominance, reaching a two-year high of over 52% in late June. However, it has since fallen below 50% due to an altcoin rally sparked by Ripple’s partial victory in court.
Despite Bitcoin’s overall performance, the average daily trading volume for BTC fell by 58.7% compared to the previous quarter. Nonetheless, the report notes that Bitcoin still outperformed most of the major asset classes in Q2, only trailing behind the NASDAQ and S&P500.
The CoinGecko report revealed that the total market cap remained relatively stable throughout the quarter, starting and ending at $1.2 trillion. As the third quarter started, the market cap remained unchanged at $1.2 trillion.
While hopes for an early altseason are waning as most altcoins, excluding XRP, continue to weaken, Bitcoin remains the dominant force in the cryptocurrency market. Solid Q2 performance has solidified its position as the crypto king, outperforming its peers and maintaining market dominance.
