Bitcoin market dominance

[apogio]

According to Coingecko, at the time of writing, BTC dominance is at 49.3%.

This lead me to the following chart (by Coingecko), which represents the market dominance history.



According to this image BTC has always been far ahead from other shitcoins.

What I am curious to know is what happened in 2017 and in 2021.

I have been searching on the internet and I have found that in 2017 ETH had the Byzantium fork which reduced the block reward from 5 ETH to 3 ETH. But ETH has no max supply so I was expecting that this wouldn't affect its price so much. At the same time, I couldn't really find anything related to Bitcoin in 2017, but I was surprised to see that BTC's price went from $1000 to $20K in a year. So if there was a 20x increase in price, how could the dominance go that low?

In 2021, I remember everyone talking about NFTs, so I guess this explains why shitcoins gained market cap.

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[Charles-Tim]

At the same time, I couldn't really find anything related to Bitcoin in 2017, but I was surprised to see that BTC's price went from $1000 to $20K in a year. So if there was a 20x increase in price, how could the dominance go that low?

ICOs were kind of new and people were new to it and they pumped it and expecting ROI. Not knowing it is like pump and dump ponzi schemes. The price of the altcoins increased significantly. When the bear market came, the altcoins fell in price significantly and some were dead. Altcoins creation and pump makes them to compete with bitcoin and reduce bitcoin dominance.

[HmmMAA]

An important factor was the number of new projects created at that time . At that time ( and earlier ) we had the ICO mania and also the separation of original protocol to branches . Another factor is the issuance of coins , bitcoin has one of the lowest "inflations" as most of the supply was issued before 2017 while others continue to increase supply with insane rates .    

[tabas]

At the same time, I couldn't really find anything related to Bitcoin in 2017, but I was surprised to see that BTC's price went from $1000 to $20K in a year. So if there was a 20x increase in price, how could the dominance go that low?

ICOs were kind of new and people were new to it and they pumped it and expecting ROI. Not knowing it is like pump and dump ponzi schemes. The price of the altcoins increased significantly. When the bear market came, the altcoins fell in price significantly and some were dead. Altcoins creation and pump makes them to compete with bitcoin and reduce bitcoin dominance.

That's right, it was due to the ICOs during that time and the craze was like how people have been into the NFTs. And it's like every week there's a new ICO project and investors are flocking into those projects and filling every crowd sale that they're getting. That was the time that when it's likely every project becomes successful every launch not until the bull run ended and 2018 came and still have tried but that's like the slow death of the ICO era. The same with the NFTs that have been the place of many scams, so do the ICOs were.

[apogio]

That's right, it was due to the ICOs during that time and the craze was like how people have been into the NFTs. And it's like every week there's a new ICO project and investors are flocking into those projects and filling every crowd sale that they're getting. That was the time that when it's likely every project becomes successful every launch not until the bull run ended and 2018 came and still have tried but that's like the slow death of the ICO era. The same with the NFTs that have been the place of many scams, so do the ICOs were.

ICOs were kind of new and people were new to it and they pumped it and expecting ROI. Not knowing it is like pump and dump ponzi schemes. The price of the altcoins increased significantly. When the bear market came, the altcoins fell in price significantly and some were dead. Altcoins creation and pump makes them to compete with bitcoin and reduce bitcoin dominance.

An important factor was the number of new projects created at that time . At that time ( and earlier ) we had the ICO mania and also the separation of original protocol to branches . .    

Since all of you mentioned ICOs, I reckon anyone could start an ICO and just get away with the money. So, could history repeat in the future and have the same impact on the dominance? Does it scare you? Perhaps it makes no difference at all.

Another factor is the issuance of coins , bitcoin has one of the lowest "inflations" as most of the supply was issued before 2017 while others continue to increase supply with insane rates

So basically you want to say that there are too many other coins to buy, but a specific amount of BTC to buy, which causes a de facto higher availability of altcoins instead of BTC. Correct?

[hyudien]

According to this image BTC has always been far ahead from other shitcoins.

What I am curious to know is what happened in 2017 and in 2021.

I have been searching on the internet and I have found that in 2017 ETH had the Byzantium fork which reduced the block reward from 5 ETH to 3 ETH. But ETH has no max supply so I was expecting that this wouldn't affect its price so much. At the same time, I couldn't really find anything related to Bitcoin in 2017, but I was surprised to see that BTC's price went from $1000 to $20K in a year. So if there was a 20x increase in price, how could the dominance go that low?

In 2021, I remember everyone talking about NFTs, so I guess this explains why shitcoins gained market cap.

Please stop the bullshit comparisons equating Bitcoin with Shitcoin. From whatever aspect you judge, it will not be the same. be it the market cap of ETH, NFTs, etc that I don't want to know more about. Bitcoin's dominance remains a benchmark for why shitcoins can still have play in the market. There will be no signs of capitalist domination of Bitcoin. People will tend to take advantage of Shitcoin which is temporary in order to continue accumulating Bitcoin. Gradually

[Tytanowy Janusz]

What I am curious to know is what happened in 2017 and in 2021.

In 2017 we had ICO mania where everyone, even with an idea of an idea, created a token and pumped altcoin marketcap. in 2021 we had meme coin mania, when you dont even have to have an idea of an idea. You just need a name to lauch a token with milions in marketcap. In addition, a toxic strategy of pumping shsitcoins marketcap has become popular (creating tokens from 1% of units in circulation and the rest 99% is only used to increase the marketcap)

edit:

Since all of you mentioned ICOs, I reckon anyone could start an ICO and just get away with the money. So, could history repeat in the future and have the same impact on the dominance? Does it scare you? Perhaps it makes no difference at all.

After the ICO mania, I thought that people had become wiser and knew not to invest money in such things. 2021 has proven to me that they are even stupider and more greedy.

[apogio]

Please stop the bullshit comparisons equating Bitcoin with Shitcoin. From whatever aspect you judge, it will not be the same. be it the market cap of ETH, NFTs, etc that I don't want to know more about. Bitcoin's dominance remains a benchmark for why shitcoins can still have play in the market. There will be no signs of capitalist domination of Bitcoin. People will tend to take advantage of Shitcoin which is temporary in order to continue accumulating Bitcoin. Gradually

Hi. I am bitcoin-only too. However, there is no need to tell me what to compare. Feel free not to comment.

In 2017 we had ICO mania where everyone, even with an idea of an idea, created a token and pumped altcoin marketcap. in 2021 we had meme coin mania, when you dont even have to have an idea of an idea. You just need a name to lauch a token with milions in marketcap. In addition, a toxic strategy of pumping shsitcoins marketcap has become popular (creating tokens from 1% of units in circulation and the rest 99% is only used to increase the marketcap)

After the ICO mania, I thought that people had become wiser and knew not to invest money in such things. 2021 has proven to me that they are even stupider and more greedy.

I thought 2021 was the original ICO mania, but I was wrong. It was in 2017 but I was unaware of all of that 

[Zaguru12]

Since all of you mentioned ICOs, I reckon anyone could start an ICO and just get away with the money. So, could history repeat in the future and have the same impact on the dominance? Does it scare you? Perhaps it makes no difference at all.

Yes the dominance of bitcoin reduced to its lowest low in 2017, because of ICO of new coins. Before 2017 you can notice almost 90% of bitcoin dominance then because there was actually almost no Alticoins then but when 2017 came the likes of ripple and Ethereum had there ICO and you know how the market reacts to a new coin. The likes of litecoin, Solana also were in the ICO stage and with bitcoin already having high supply people really wanted to have a thing that could pump more and this was what actually Happened. The ripple itself had a huge pump of about 36,000 and Solana also pumped although it was in 2018 but its dominance was because it didn’t follow the POW protocol then and was looking different.

I wouldn’t be scared that the dominance of 2017 by Altcoins will happen again because people have seen their value bitcoin holds over them. In that 2017 year what the likes of ripple and Solana promised were fast transaction and people have found a way through that. So I don’t think many people will invest in new ICO projects agains like they did before

[freedomgo]

Market dominance of altcoins tends to increase during a bull run as both the old altcoins experience a surge, and new ones come to life and start rising again. This is a common market sentiment during a bull run, but it shouldn't be viewed as a consistent trend because the real market dominance of a particular coin can only be measured when the market is neutral, much like our current situation.

As of now, according to CoinMarketCap (CMC), market dominance is at 51%. This is because the market hasn't seen any significant movement, and investors often tend to put their money back into Bitcoin once the bull run subsides. If I recall correctly, back in 2021, Bitcoin dominance dropped to just over 30%, which is a significant difference compared to the current scenario, right? The reason behind this is that, despite Bitcoin's impressive rally where it reached $60k at that time, altcoins also had their own bull party. So, it's a bit of a complex situation; you can't really gauge the true state of the market during both bull and bear seasons since they tend to be either overvalued or undervalued.

[apogio]

Market dominance of altcoins tends to increase during a bull run as both the old altcoins experience a surge, and new ones come to life and start rising again. This is a common market sentiment during a bull run, but it shouldn't be viewed as a consistent trend because the real market dominance of a particular coin can only be measured when the market is neutral, much like our current situation.

I wouldn’t be scared that the dominance of 2017 by Altcoins will happen again because people have seen their value bitcoin holds over them. In that 2017 year what the likes of ripple and Solana promised were fast transaction and people have found a way through that. So I don’t think many people will invest in new ICO projects agains like they did before

Yes I realise that. It all comes down to the fact that people want to make a quick buck, so they buy altcoins in the bull run, then they get out and re-buy bitcoin in the bear market.

[Helena Yu]

Since all of you mentioned ICOs, I reckon anyone could start an ICO and just get away with the money. So, could history repeat in the future and have the same impact on the dominance? Does it scare you? Perhaps it makes no difference at all.

Not anymore, majority of people already learn from past mistakes, at that time the number of altcoins which scam is still low.

ICOs was big because of big project in bounties, but after 2017 which is 5 years, a legit bounty is really really low than the failed and scam project. How can we expect "repeat" when most people aware if bountiy is full of scammers?

[apogio]

Thank you all for the replies, apparently I was unaware that in 2017 there was this ICO madness. In fact, I thought this was the case in 2021 with the NFTs.

My original question was targeted to getting a historical explanation because I couldn't find it online. Now that you told me about the ICOs, I can find some results on the internet.

I will lock the topic, since I believe my question is properly answered by all of you.

Once again, thank you all!