How Bitcoin’s Dominance Bleeding Altcoins in Q2: CoinGecko Analysis

Cryptocurrency Market Performance in Q2 2023

The second quarter of 2023 was a positive one for Bitcoin, as its market dominance rose against altcoins, according to CoinGecko. On July 18, the crypto data aggregator released its industry report for Q2 2023 which noted Bitcoin (BTC) and Ether (ETH) both made gains.

Meanwhile, Binance Coin (BNB), XRP (XRP) and Cardano (ADA) all experienced double-digit losses over the quarter. CoinGecko attributed the losses of BNB and ADA to the lawsuits filed by the Securities and Exchange Commission, labeling both as securities.

DeFi Tokens and Bitcoin Dominance

The crypto.com DeFi tokens such as Uniswap (UNI), Chainlink (LINK) and Lido (LDO) were hit hard during the quarter, with double-digit losses. The market cap of the top five metaverse and play-to-earn tokens, including Axie Infinity (AXS), Sandbox (SAND) and Decentraland (MANA), also dropped by up to 40%.

The altcoin losses pushed Bitcoin dominance to a two-year high of 52% in late June. However, the recent altcoin rally, triggered by Ripple’s partial court victory, caused it to dip below 50%. After the XRP pump, most of the altcoins that gained have already lost their gains, returning the market to its state before the court ruling.

Crypto Market Cap Stays Sideways in Q2

CoinGecko reported that the total market cap of crypto remained sideways for the quarter, ending where it started the period at $1.2 trillion. This trend continued into the third quarter and is still at $1.2 trillion at the time of writing.

The big winner for the period was Bitcoin, which outperformed the rest of the market with its gain of almost 7%. However, the average daily trading volume for BTC declined 58.7% from the previous quarter.

“After a stellar Q1, Bitcoin still outperforms most major asset classes in Q2, only lagging behind the NASDAQ and S&P500,” the report stated.

With most altcoins, such as Monavale Crypto, Luna Crypto, Kadena Crypto, Maker Crypto, and Link Crypto, aside from XRP continuing to retreat at the moment, hopes for an early “altseason” are dwindling as Bitcoin remains the king of crypto.

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