Crypto market sentiment turned more positive in the month of August, which saw the digital assets in the space return to double-digit growth in the first week of the month. However, the market has not been able to properly sustain its bullish trend, and cryptocurrencies are starting to lose the gains they made in the first week. While assets remain largely positive, last week’s gains are significantly smaller than the previous week.
Weekly gains are down across all segments
Weekly gains in the crypto market have been on the decline for the past week. The Small Cap Index continues to be the clear winner throughout the week, as is expected during such recoveries. But that was nowhere near the gain seen in the previous week.
Small Cap altcoins came out on top with a gain of 8% for the past week. This put it 2% ahead of the mid-cap and large-cap index and 5% better than Bitcoin’s performance. However, it should be noted that small-cap altcoins have higher volatility than other indices. Hence the large swings in gains and losses.
The Large Cap Index made a surprising move last week, competing with the returns of the Mid Cap Index. Usually, in cases like this, the Mid Cap tends to outperform the Small Cap, but last week it returned a 6% gain, same as the Large Cap Index.
Bitcoin was once again the worst of the bunch. It recorded an increase of only 3%, maintaining a noticeable distance from other indices.
Bitcoin sees a decline in crypto market dominance
Bitcoin has seen its dominance of the crypto market decline over the past two years. With the entry of popular cryptocurrencies such as Ethereum, leading assets have had to give up more market share to make room for others. But even with so much market share already taken from the pioneering cryptocurrency, altcoins continue to nibble at their heels.
Last week, bitcoin saw another decline in its market dominance. The 0.42% taken by altcoins has now pushed Bitcoin’s dominance into 40% territory. Meanwhile, Ethereum is seeing a growing market share. The altcoin added 0.89% last week, taking its market dominance above 20% to 20.74% at the time of writing.
Stablecoins are also losing market share as investors begin to take more risks. USDT, USDC and BUSD all saw declines of 0.03%, 0.17% and 0.03% respectively. Surprisingly, Dogecoin added 0.15% to its market dominance, while Solana had an increase of 0.01%.
The crash saw more than $50 billion wiped from the crypto market cap, which at the time of writing reached $1.10 trillion.
Featured image from Analytics Insight, chart from TradingView.com
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