Altcoin dominance refers to the market share of all cryptocurrencies except for Bitcoin. This metric is used to evaluate the overall performance and influence of alternative cryptocurrencies in the market relative to Bitcoin.
A high altcoin dominance indicates that the market value of altcoins is strong in comparison to Bitcoin, suggesting that investors are more actively trading and investing in alternative cryptocurrencies. Conversely, a low altcoin dominance suggests that Bitcoin holds a larger share of the market value, indicating a higher level of confidence and stability in the leading cryptocurrency.
Investors and analysts often monitor altcoin dominance as it can provide insights into market trends and shifts in investor sentiment towards different cryptocurrencies. Changes in altcoin dominance can also impact trading strategies and investment decisions in the cryptocurrency market.
