Sentiment in the crypto market had become more constructive during the month of August, and it saw digital ownership in the home return to double-digit growth in the first week of the month. Nevertheless, the market has not been able to properly continue its bullish development and cryptocurrencies are starting to lose the positive factors they had put in place during the first week. While the property remains broadly within constructive ranges, the positives from the past week are significantly lower than the previous week.
Weekly positives drop across the board
The weekly positive factors in the crypto market have been declining for the past week. The small cap index nevertheless remains the clear winner of the week, as expected during such rallies. Nonetheless, it was by no means close to the positives recorded the previous week.
Small cap altcoins came out on top with 8% positives for the past week. This puts it 2% ahead of the Mid and Giant Cap Index and 5% higher than Bitcoin’s efficiency. Nevertheless, it should be taken into account that small cap altcoins possess additional volatility compared to other indices. Therefore, the large fluctuations of the positive factors and losses.
The Giant Cap Index made a stunning move last week as it rivaled the returns of the Mid Cap Index. Often in circumstances like these, the Mid Cap tends to outperform alongside the Small Cap, but last week it returned 6% positive, the same as the Giant Cap Index.
Bitcoin was the worst of the bunch once again. It rated just 3% positives, standing a noticeable distance from the rest of the indexes.
Bitcoin Sees Crypto Market Dominance Decline
Bitcoin has seen its dominance of the crypto market decline over the past two years. With the gate of widespread cryptocurrencies corresponding to Ethereum, the main asset had to give up additional market share to make room for others. However, even with a large market share already taken from the pioneering cryptocurrency, altcoins continue to dig their heels in.
Last week, bitcoin saw another drop in its market dominance. The 0.42% picked up by altcoins has now resulted in bitcoin’s dominance all the way to 40% territory. In the meantime, Ethereum is seeing its market share increase. The altcoin added 0.89% last week, taking its market dominance above 20% to 2.74% at the time of this writing.
Stablecoins are also losing market share as buyers start taking on additional risk. USDT, USDC and BUSD all recorded declines of 0.03%, 0.17% and 0.03% respectively. Surprisingly, Dogecoin added 0.15% to its market dominance, while Solana noticed an increase of 0.01%.
The drop saw over $50 billion wiped from the crypto market cap, bringing it to $1.10 trillion at the time of writing.
Featured picture from Analytics Perception, chart from TradingView.com
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