In the second quarter of 2023, Bitcoin’s performance stood out as its market dominance increased in comparison to altcoins, which experienced significant losses. According to CoinGecko’s industry report released on July 18, Bitcoin (BTC) and Ether (ETH) continued to build upon their gains from the previous quarter. However, other cryptocurrencies like Binance Coin (BNB), XRP (XRP), and Cardano (ADA) suffered double-digit losses during this period.
The biggest losers of the quarter were BNB and ADA, both of which were implicated in lawsuits filed by the Securities and Exchange Commission against Binance and Coinbase. These lawsuits labeled BNB and ADA as securities, causing their value to plummet.
DeFi Tokens and Metaverse Coins Take a Hit
The decentralized finance (DeFi) sector was hit particularly hard in Q2, with tokens like Uniswap (UNI), Chainlink (LINK), and Lido (LDO) experiencing significant losses. Additionally, metaverse and play-to-earn tokens, including Axie Infinity (AXS), Sandbox (SAND), and Decentraland (MANA), also suffered losses of up to 40%.
As a result of these losses, Bitcoin’s dominance reached a two-year high of just over 52% in late June. However, it has since dropped below 50% due to an altcoin rally driven by Ripple’s partial court victory. Despite this rally, most altcoins that experienced gains following the XRP pump have already lost them, bringing the market back to its pre-court ruling status quo.
Bitcoin Outperforms the Market, but Trading Volume Declines
Bitcoin emerged as the winner of the quarter, outperforming the rest of the market with a gain of almost 7%. However, its average daily trading volume declined by 58.7% compared to the previous quarter. Despite this decline, Bitcoin still managed to outperform most major asset classes, only lagging behind the NASDAQ and S&P500.
As altcoins, except for XRP, continue to retreat, hopes for an early “altseason” are diminishing. Bitcoin remains the dominant force in the cryptocurrency market, asserting its position as the king of crypto.
The total market cap remained relatively stable throughout the quarter, starting and ending at $1.2 trillion. As we enter the third quarter, the market cap remains unchanged at $1.2 trillion. While Bitcoin’s dominance may fluctuate, its strong performance and market position continue to solidify its status as the leading cryptocurrency.