Bitcoin Market Share Hits 54%, Altcoins Struggle to Keep Up

• Bitcoin market share has surged to 54%, the highest since 2021, highlighting its resilience amidst altcoin struggles.
• Altcoins, including Ethereum, saw significant price drops, while Bitcoin remained stable, cementing its status as a safer asset.

Rising to its greatest market share since April 2021, Bitcoin has had a notable comeback in 2024. IntoTheBlock data show that, given the difficulties altcoins have encountered over the year, Bitcoin’s dominance in the crypto industry skyrocketed to 54% in the third quarter (Q3).

While other cryptocurrencies, like Ethereum and lesser altcoins, suffered notable price losses, this recovery highlights Bitcoin’s resilience as a more steady and dependable digital asset. Actually, Ethereum’s market share plummeted to just 13%, which made this year challenging for the second-largest cryptocurrency.

BTC's market share reached its highest since April 2021 this quarter

Bitcoin's price traded mostly sideways throughout the quarter, while ETH and smaller tokens set new yearly lows in terms of price pic.twitter.com/TTEX7W4Yf2

— IntoTheBlock (@intotheblock) October 5, 2024

Bitcoin Stability Shines as Altcoins and Stablecoins Reflect Market Shifts 

The steadiness of the Bitcoin market contrasts with the challenges of its rivals. While Bitcoin traded essentially sideways over the quarter, Ethereum and other altcoins set new yearly lows, therefore highlighting a widening performance difference.

Choosing Bitcoin over altcoins, which have failed to sustain the momentum they created in past years, investors have moved to the safer bet more and more. Once dubbed as possible “Ethereum killers,” many of these lesser cryptocurrencies have seen their value drop as market confidence erays.

Apart from Bitcoin’s supremacy, stablecoins today account for a significant 26% of the market, a reflection of investor tastes for less erratic assets in times of market volatility. This highlights a larger trend whereby investors are not only keeping Bitcoin but also investing a sizable fraction of their portfolios in stablecoins, so acting not only cautiously.

These assets have given stability and liquidity as well as cover among the volatility that has dogged most of the crypto space. With no indications of Bitcoin being supplanted anytime soon, its sustained performance has only strengthened its importance as the pillar of the crypto ecosystem.

Meanwhile, the BTC price has lately shown good movement. At the time of writing, it was $63,523.39, up 2.51% over the last 24 hours and 17.06% over the last 30 days.

Beside that, according to a prior CNF report, declining transaction fees and increasing operating costs caused Bitcoin miners to see their income decline to $816 million in September. The post-halving environment has created additional challenges, reduced payouts and more challenging mining have impacted profitability.