The Bitcoin dominance has been steadily increasing since 2022, becoming one of the most prolonged periods of growth in its history, while active users decline. The recent IntoTheBlock statistics show that BTC maintains robust market dominance while new alternative assets enter the market. The dominance chart data shows Bitcoin maintaining its authority over the top 300 tokens by market share through the blue-shaded area, stressing its position as the number one cryptographic asset.
Bitcoin’s market dominance has been on a steady rise since 2022, marking one of the longest periods of sustained growth on record.
However, when measuring by active users, Bitcoin’s share has declined as more on-chain activity gravitates toward Ethereum and other Layer 1… pic.twitter.com/1pff4wQAwu
— IntoTheBlock (@intotheblock) March 12, 2025
This increased dominance does not reflect the complete reality. Bitcoin receives continuous capital investments yet its position among active addresses has decreased. The decrease of addresses indicates Ethereum and other Layer-1 blockchains collectively gain more active users than Bitcoin.
Ethereum and Altcoins Capture More Active Users
Bitcoin retains its large market share but Ethereum (ETH) with a lineup of other Layer-1 networks show steady growth in active user numbers. A continuous downward trend in BTC address ownership rate began in 2021 because Ethereum maintains more user interaction when compared to Bitcoin. TRX alongside TON and AVAX showcase how users choose blockchain alternatives.
The migration away from Bitcoin in blockchain usage stems from three main factors consisting of Ethereum’s Decentralized Finance (DeFi) sector alongside lower fees on alternative networks and expanded capabilities of smart contract-based ecosystems. The implementation of Ethereum’s staking mechanism together with expanding rollup adoption will likely reduce BTC’s transactional powers despite its growing market capitalization.
Institutional Capital vs. Retail Activity: A Diverging Trend
Bitcoin’s expansion is mainly supported by institutional investors combined with long-term investors, yet retail investors show potential in utilizing dynamic blockchain environments. The process through which BTC solidifies its position as a store of value seems to reduce its potential roles in daily transactions.
The Ethereum platform maintains its active user base through continuous developer work and flourishing DeFi innovations as well as thriving NFT and market activity. The widening gap between incoming market capital and user base activities may determine the future direction of cryptocurrencies in their market evolution.
Final Thoughts: What’s Next for Bitcoin and Crypto?
The crypto market still recognizes Bitcoin as its leading force despite its falling share of actively participating users who see it as just a digital gold storage method. The transaction-oriented features of Ethereum alongside other alternative coins attract an expanded number of retail users to their systems. BTC’s position in the evolving market remains uncertain since it might either evolve or surrender ground to other competing platforms in the future.
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