Bitcoin (BTC) dominance climbed above 47% for the first time since October.
The leading cryptocurrency tends to increase its market share during major market corrections due to the risk aversion sentiment. Bitcoin is seen as a safer investment tool than Ethereum and other altcoins.
True Insights founder, Jeroen Blokland, believes the recent rise in Bitcoin dominance is due to the collapse of Terra and the disruptions to Solana.
Bitcoin’s market share increased by 12% after the Terra crash.
In early 2021, just after Bitcoin’s rally in late 2020, the asset’s market share was as high as 71%. The performance of Ethereum and Dogecoin in the first quarter of 2021 caused Bitcoin’s dominance to decline. Likewise, the performance of Solana and Terra at that time left Bitcoin in the shadows.
