Bitcoin has showcased a strong performance in the second quarter of 2023, gaining market dominance against struggling altcoins, according to CoinGecko’s industry report. Despite market fluctuations, Bitcoin (BTC) and Ether (ETH) continued to build upon their gains from Q1, while other major altcoins, such as Binance Coin (BNB), XRP, and Cardano (ADA), experienced double-digit losses.
CoinGecko attributed the significant losses of BNB and ADA to their classification as securities in lawsuits filed by the Securities and Exchange Commission against Binance and Coinbase. Decentralized finance (DeFi) tokens, including Uniswap (UNI), Chainlink (LINK), and Lido (LDO), were also hit hard during the quarter, suffering double-digit losses.
The metaverse and play-to-earn tokens, such as Axie Infinity (AXS), Sandbox (SAND), and Decentraland (MANA), also marked losses of up to 40%. This downward trend led to an increase in Bitcoin dominance, reaching a two-year high of just over 52% in late June. However, it has since dropped below 50% due to the altcoin rally triggered by Ripple’s partial court victory.
Despite Bitcoin’s overall outperformance, the average daily trading volume for BTC declined by 58.7% compared to the previous quarter. Nonetheless, the report noted that Bitcoin still outperformed most major asset classes in Q2, trailing behind only the NASDAQ and S&P500.
CoinGecko’s report revealed that the total market cap remained relatively stable throughout the quarter, starting and ending at $1.2 trillion. As the third quarter begins, the market cap remains unchanged at $1.2 trillion.
While hopes for an early altseason are diminishing as most altcoins, excluding XRP, continue to retreat, Bitcoin remains the dominant force in the cryptocurrency market. Its solid Q2 performance has solidified its position as the king of crypto, outperforming its counterparts and maintaining market dominance.
