BTC dominance surpasses 50% amidst altcoin crackdown.

Bitcoin (BTC) has recently experienced some difficult times, but its market dominance may never have been in question. This is because the flagship cryptocurrency’s market capitalization has recently surpassed that of all other cryptocurrencies combined, according to TradingView data. On Monday, Bitcoin dominance exceeded 50% for the first time in over two years. Since the BTC price fell following China’s ban in May 2021, the closest BTC dominance came to 50% was in June 2022. That was just before the entire market plummeted again due to persistent inflation.

Here’s What May Be Helping Bitcoin Dominance

Bitcoin dominance represents the ratio of BTC’s market capitalization to that of the entire crypto market. However, some argue that the metric is flawed because it includes stablecoins in its calculations. They argue that BTC’s true market share is not accurately represented by that calculation since stablecoins are essentially just dollars trading on the blockchain.

Even stablecoins have had a rough year so far, however. In February, the US Securities and Exchange Commission (SEC) ordered Paxos to stop issuing BUSD. More recently, top altcoins such as Cardano (ADA), Solana (SOL), and Polygon (MATIC) have also suffered significant losses, after the SEC filed a lawsuit against Coinbase alleging that all three coins are unregistered securities. Similarly, the regulator also filed a lawsuit against Binance claiming that the exchange’s native token BNB is a security. As expected, news of the lawsuit caused the BNB token to plummet by at least 20% in the current month alone. However, it’s worth noting that BNB holds a significant share of the crypto market as it is the fourth largest crypto by market cap.

With serious regulatory pressure on all sides, stablecoins have had billions of dollars wiped off their combined market capitalization. As a result, BTC once again dominates the crypto market convincingly. Perhaps there may even be room for more dominance. Last Tuesday, MicroStrategy’s Michael Saylor predicted that Bitcoin dominance will eventually rise above 80% if regulators continue to clamp down on other digital assets.

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