Bitcoin's Dominance Is Eroding In Favor Of Ethereum And XRP

Bitcoin remains the king, but its throne is shaking. Its dominance is slowly slipping, hinting at a comeback for altcoins. Ethereum and XRP lead the pack as the challengers gain ground.

A Supremacy Put to the Test

For years, bitcoin’s dominance over the crypto ecosystem seemed unshakable. The market king, strengthened by its longevity and legitimacy, often represented more than two-thirds of the sector’s total capitalization. 

Yet, this July, a crack appears in its armor. Bitcoin’s dominance, which recently peaked at 65.5%, has dropped to 61%. A clear decline, modest in appearance but heavy with meaning.

This shift coincides with a spectacular rise of altcoins, especially Ethereum (+20%) and XRP (+23%), which are capturing new market shares. XRP even reached an all-time high and could hit 200 billion in market capitalization.

This is proof that investors no longer rely on bitcoin as the sole safe haven. This shift did not happen quietly: it is accompanied by a tangible stir in portfolios as well as on forums.

However, as Adrian Fritz from 21Shares reminds us, it is too early to talk about a confirmed “altseason.” The market, though shaky, still awaits a strong signal, perhaps a macroeconomic or regulatory trigger, to fully switch to this new cyclical phase.

Ethereum and XRP Lead the Dance

While bitcoin shows signs of relative fatigue, Ethereum and XRP establish themselves as the locomotives of this altcoin buzz. The second-largest crypto benefits from a renewed interest, driven by a clear vision on its technological roadmap (rollups, proto-danksharding, etc.), but also growing expectations for a spot ETH ETF in the United States.

As for XRP, its surge is no accident. Between favorable court rulings for Ripple and renewed speculative enthusiasm, the asset is regaining strength. This is not just a technical rebound: it is a reaffirmation of its place in the top 5 cryptos. Its adoption in certain geographic areas, particularly in Asia, continues to attract investors seeking concrete use cases.

We must also not overlook the leverage effect of memecoins like Bonk and Floki, which, with gains over 45%, capture attention and attract liquidity. This phenomenon reflects a well-known trend in bull markets: when Bitcoin stagnates, capital redirects to more volatile and potentially lucrative bets.

Towards an Altseason or Just a Flash in the Pan?

The Altcoin Season Index from CoinMarketCap, currently at 43, remains in neutral territory, far from the critical threshold of 75 that would indicate a shift. The signals are mixed, but the dynamic is changing. Investor behavior is shifting, fueled by hopes of a Fed monetary easing by autumn. A rate cut would act like a turbocharger on the risk asset market, crypto leading the way.

The stakes go beyond pure performance. This moment might mark the beginning of a new balance, where bitcoin’s dominance is no longer a given, but a debated factor. The arrival of spot ETFs has indeed anchored bitcoin more firmly in institutional portfolios, but this massive presence might also make it… predictable. And in the crypto world, predictability rarely means opportunity.

As crypto legislation becomes clearer in Washington, a new breeze might well blow over altcoins. The weak signals are there: flow diversification, renewed interest in competing ecosystems, rising indices. It remains to be seen whether this stir will turn into a tidal wave.

Bitcoin’s dominance is slowly but surely eroding. It is not yet a revolution, but it might be the prelude to a reshuffling of the cards. Ethereum, XRP, and next-generation altcoins are waiting for a catalyst to launch their charge. The king is not dead, but his challengers are more threatening than ever. Indeed, the altcoin market has surpassed 1.5 trillion dollars in capitalization.