Investors reconfigure capital as Bitcoin dominance weakens

Bitcoin’s market dominance fell below 50% for the first time since the end of 2020, driving capital into altcoins such as Ethereum, Solana and Cardano. Driven by the popularity of DeFi and the upgrade of Ethereum 2.0, Ethereum has performed 40% more than Bitcoin in three months. Increased interest in retail and institutional investors, supportive regulations introduced in markets such as Singapore and Japan, and the growing volume of altcoin transactions (FTX has grown 70% so far this year) are accelerating this shift. Analysts warn that altcoins will intensify volatility and risk in fragmented markets of more than 18,000 projects.