According to CoinGecko’s Q2 2023 industry report, Bitcoin’s market dominance strengthened while altcoins experienced significant losses, leading to a challenging quarter for them.
On July 18, CoinGecko released data showing that Bitcoin (BTC) at $29,940 and Ethereum (ETH) at $1,907 continued to build upon their gains from Q1 during Q2.
However, several altcoins suffered double-digit losses during the same period. Binance Coin (BNB) at $241 and Cardano (ADA) at $0.315 were particularly affected, largely due to their classification as securities in lawsuits filed against Binance and Coinbase by the Securities and Exchange Commission.
Decentralized finance (DeFi) tokens were hit hard in Q2, with Uniswap (UNI) at $5.85, Chainlink (LINK) at $6.80, and Lido (LDO) experiencing substantial losses.
Even the top five metaverse and play-to-earn tokens by market cap, including Axie Infinity (AXS) at $6.38, Sandbox (SAND) at $0.44, and Decentraland (MANA) at $0.40, faced losses of up to 40% during the quarter.
In late June, Bitcoin’s dominance reached a two-year high, surpassing 52%. However, it has since dropped below 50% due to the recent altcoin rally triggered by Ripple’s partial court victory.
Interestingly, most of the altcoins that initially gained momentum after the 80% surge in XRP prices have already given up those gains, bringing the market back to its status quo before the court ruling.
According to CoinGecko’s report, the total market cap remained relatively stable throughout the quarter, starting and ending at $1.2 trillion. As we move into the third quarter, the market cap remains unchanged, still standing at $1.2 trillion at the time of writing.
According to the report, Bitcoin emerged as the significant winner during the period, outperforming the rest of the market with an impressive gain of almost 7%. However, the average daily trading volume for BTC experienced a significant decline of 58.7% compared to the previous quarter.
The report also highlighted that despite its outstanding performance in Q1, Bitcoin still managed to outperform most major asset classes in Q2, trailing only behind the NASDAQ and S&P500.
As most altcoins, excluding XRP, continue to face setbacks currently, the prospects for an early “altseason” are diminishing, while Bitcoin maintains its position as the dominant force in the crypto world.
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