Data confirms that XRP’s historic rise has led to a decline in Bitcoin’s dominance

Bitcoin dominance, a key metric that reflects its share of the total cryptocurrency market capitalization, recently saw a notable decline of 6%.

From this, XRP accounted for a significant 3% increase in its dominance. While Bitcoin’s dominance is now rebounding, the broader implications highlight evolving trends in cryptocurrency market liquidity.

News about XRP: CryptoQuant founder, Ki Young Joo, brought this remark to the public’s attention in a tweet.

The Rise of Independent XRP

In recent weeks, XRP has seen appeared As one of the few altcoins attracting new liquidity, which directly contributes to the temporary decline of Bitcoin’s dominance. Specifically, between November 3 and December 3, the price of XRP rose by almost 500%.

In parallel, its market capitalization expanded more than five times, from $28.99 billion to an all-time high of $154.83 billion. This major move for XRP dealt a blow to Bitcoin’s dominance, which at one point stood at 52%. Meanwhile, the percentage is now about 60%.

the Increasing XRP’s market share It highlights the break from traditional patterns as altcoins closely mirror Bitcoin’s bullishness. Instead, XRP is crafting its own narrative, driven by growing interest and independent adoption.

This trend is in line with Ki Young Ju’s previous prediction. Two weeks ago it is expected Altcoin seasons will deviate from expectations, with only altcoins being selected that gain traction due to their unique ecosystems or market dynamics.

Altcoin season status

Despite the rise of XRP, the current market does not resemble a typical “alt season,” with most altcoins outperforming Bitcoin.

According to Ki Young Joo’s recent comment, alternations between Bitcoin and altcoins are still limited, and only a few altcoins, such as XRP, attract significant liquidity. This represents a change from previous cycles, suggesting that altcoins now require distinct levers or market narratives to thrive.

This observation is further underscored by market data showing that Bitcoin is currently outperforming as much as 74% of the crypto assets in the top 100. With Bitcoin trading at $93k, it boasts annual growth of 1,110%.

Meanwhile, altcoins like Celestia (TIA), Arbitrum (ARB), Polygon (formerly POL, MATIC), Optimism (OP), and DYDX have all posted staggering losses of over 50% in their YTD performance.

Young Joe suggested that altcoins are not seeing the traditional rotation from Bitcoin to altcoins because Bitcoin has created a second-layer fiat ecosystem through ETFs and corporate treasury allocations. This limits liquidity flows to altcoins.

According to Young Joo, the two possible paths for altcoins to remain relevant are to develop “paper-wrapped” versions similar to Bitcoin Institutional Products And build strong ecosystems that leverage stablecoins or Bitcoin as core elements.