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BTC dominance refers to the percentage of BTC in the total Market Cap of Cryptocurrency. Traditionally, BTC has always dominated the field of Cryptocurrency, usually accounting for more than 40% of the total Market Cap. However, recent trends show that the dominance of BTC is declining, which raises an important question: does this herald the arrival of the Altcoin season?
The decline in BTC's dominance usually indicates that AltCoins have a greater increase than BTC. During the decline of BTC's dominance, investors typically shift their focus to alternative cryptocurrencies (AltCoins) in search of higher returns and portfolio diversification. This shift may be driven by various factors, including advancements in blockchain technology, new use cases, or innovative projects that pique investor interest.
One key factor that may contribute to this trend is the increasing popularity of decentralized finance (DeFi), non-fungible tokens (NFTs), and blockchain interoperability. These industries often rely on altcoins such as Ethereum, Solana, and Polkadot, leading to increased demand and price appreciation for these tokens. Additionally, the launch of major blockchain updates or network upgrades can also spark newfound interest in specific altcoins.