Altcoin dominance measures the share of the total cryptocurrency market capitalisation that belongs to all coins other than Bitcoin. It shows how much of the market’s value is concentrated in altcoins compared to the market’s oldest and most established asset. When altcoin dominance rises, it suggests traders are shifting more capital toward alternative projects, often chasing higher growth, emerging trends or stronger short-term momentum. When it falls, it usually means Bitcoin is regaining strength as investors move back toward safety.

Altcoin dominance helps traders understand where the market’s attention is going. A rising dominance level can signal growing confidence in innovation sectors such as smart-contract platforms, gaming tokens, meme coins or layer-two networks. It often increases during bullish periods when risk appetite is high, and traders are comfortable exploring smaller assets. On the other hand, dominance tends to drop during uncertainty, regulatory pressure or sharp Bitcoin rallies, as investors prefer stability.

Many traders use altcoin dominance to judge whether an altseason is starting or ending. If dominance breaks key resistance levels while Bitcoin’s price consolidates, it often hints that capital may rotate into altcoins. Pairing this metric with total market cap, Bitcoin dominance, volume trends and sentiment data gives a clearer picture of broader conditions. Altcoin dominance doesn’t predict price movements alone, but it adds valuable context. It helps traders understand market rotation, risk appetite and shifts in investor behaviour across the crypto space.