Why Bitcoin's Dominance Isn't a Bubble

Since the fall of 2024, I've seen discussions about Bitcoin's market dominance becoming excessively high, with some calling it a bubble about to burst.

This has always puzzled me. The current dominance of around 65% is actually close to Bitcoin's historical average in the crypto market. Check out the latest NYDIG chart and see for yourself. We're only now reaching the dominance levels last seen in 2019-2020, which were considered high.

Now, some might argue that back then, this dominance was measured against several thousand other crypto assets. And yes, I just checked pump.fun and saw that 20 new tokens were launched in the last minute. That’s 1,200 tokens an hour. In other words, pump.fun alone creates several thousand crypto assets in just a few hours.

In this context, Bitcoin's growing dominance is truly remarkable. Today, it's maintaining its position not against thousands, but millions of other assets!

However, this means that each successful new token doesn’t eat into Bitcoin’s share of the pie – instead, they’re fighting for an increasingly smaller slice of what's left after Bitcoin.

When was the last time you heard of a new cryptocurrency positioning itself as a Bitcoin competitor? Until such a competitor emerges, I believe Bitcoin's dominance won’t significantly decrease. This makes Bitcoin a solid addition to any portfolio.

So head over to rabbit.io. While we don't list millions of crypto assets, you can exchange 8,494 cryptocurrencies for Bitcoin right now.