Bitcoin has seen its share of the cryptocurrency market fall by almost 5% in just two weeks as the altcoin boom continues.
According to data from CoinMarketCap, as of August 5, the largest cryptocurrency had a market cap share of 60.5%—its lowest since June 2019.
The loss of presence has accelerated in recent weeks, as altcoins led by Ethereum see a renaissance in both trading and price action.
Bitcoin realized cap hits $109 billion
Analysts remain bullish on the market outlook for both Bitcoin and altcoins.
“In March, we dropped to sub $4k. Look at crypto now,” Michaël van de Poppe summarized this week.
The overall cryptocurrency market cap now stands at $137 billion, a rise of more than $82 billion since the cross-asset crash of mid-March.
The total has likewise not been so high since June 2019, when Bitcoin was circling $14,000 on the back of a bull run which took just three months to transform the market from $4,000.
Market cap is a classic but imperfect measure of cryptocurrency performance. A major problem revolves around crypto’s specific properties—as analytics resource Coin Metrics notes, dormant or lost coins distort the true picture of a token’s market cap.
This has led to the creation of realized cap as a preferred metric for Bitcoin dominance.
“The realized cap attempts to improve on the market cap by trying to discount coins that might be lost,” Coin Metrics, which created realized cap, explained on its unveiling in late 2018.
“Its crux is to value different parts of the supplies at different prices, instead of using the daily close as market cap does.”
Realized cap thus tells a very different story to regular market cap — now, as in last June, the figure is at all-time highs for Bitcoin. At press time, the figure totalled $109 billion.
Square success highlights consumer demand
Beyond the Bitcoin-altcoin battle, other network instruments are suggesting that momentum behind the current exuberance is more precarious.
The Crypto Fear & Greed Index, which measures investor sentiment using a basket of factors, has sat in the “Greed” category for more than a week.
With a score of 75/100, the Index is at its highest in more than a year, further reinforcing similarities to 2019. Just three weeks ago, it languished at 44, near “Neutral” territory.
As Modern Consensus continues to report, trader sentiment has transformed in recent weeks, while business data shows that Bitcoin really is in the midst of a fresh publicity surge.
Twitter CEO Jack Dorsey’s payments company Square, which began offering Bitcoin buys in 2018, made almost $900 million in revenue thanks to BTC in Q2 2020 alone.
Statistics released this week also include $17 million in profits from Bitcoin activities, with revenue transformed by the addition of the cryptocurrency to Square’s Cash App.
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