Bitcoin dominance, which measures the cryptocurrency\u2019s market capitalization relative to the total crypto market, dropped to 39.4% Tuesday, the lowest since May 2018.\u00a0<\/p>\n
The number has fallen as the crypto environment becomes \u201cmore competitive,\u201d with investors pouring more money into other blockchains, nonfungible tokens and decentralized finance, analysts said.\u00a0<\/p>\n
Bitcoin \u201cIn the past three years, especially since the peak of 2017 bull market and Q1 of 2018, altcoins\u00a0and other projects that aren\u2019t bitcoin have grown in legitimacy.\u201d Adrian Kolody, co-founder of Domination Finance, a platform that tracks bitcoin dominance, said in an interview.<\/p>\n Michal Cymbalisty, co-founder of Domination Finance, said that \u201cwith bitcoin above $40,000, the return is just not appealing as they were when bitcoin was like $10,000 or $15,000.<\/p>\n \u201cIf you\u2019re already coming into crypto, naturally you have a higher risk appetite. So you want high ROI (return on investment),\u201d Cymbalisty said. \u201cMost of the fundamental development is happening outside of bitcoin.\u201d<\/p>\n Bitcoin has consolidated in a range between $45,000 and $52,000 for the past month. The cryptocurrency\u2019s \u201cchoppy sideways pattern looks set to continue although support is coming under pressure,\u201d Nicholas Cawley, strategist at forex analysis site DailyFX wrote in an email.\u00a0<\/p>\n A confirmed break of support would \u201copen the way to a cluster of prior lows just above $40k, while a break of resistance opens the way back to just under $53k,\u201d wrote Cawley.\u00a0<\/p>\n Ethereum Among smaller coins, Cosmos\u2019s ATOM
\n BTCUSD,
\n +0.08%<\/a>
\n started off 2022 underperforming smaller tokens, as the largest cryptocurrency posted a 0.7% loss year-to-date, while all the crypto market cap-weighted indexes are in positive territory, according to a Tuesday report by crypto analysis firm Arcane Research.\u00a0<\/p>\n
\n ETHUSD,
\n +2.28%<\/a>
\n was trading near $3,805, up 1.9% over the past 24 hours and up 2.1% year-to-date.\u00a0<\/p>\n
\n ATOMUSD,
\n +13.84%<\/a>
\n token rose 55% over the past seven days. Fantom is trading 32.8% higher from seven sessions ago. Meme coin Dogecoin
\n DOGEUSD,
\n -0.41%<\/a>
\n traded 5.4% lower during the past seven sessions. Another dog-themed token, Shiba Inu
\n SHIBUSD,
\n -0.55<\/a>,<\/span>
\n declined roughly 5% for the past seven days. <\/p>\n<\/p><\/div>\n<\/div>\n