The growth in Bitcoin’s ( BTC ) dominance ratio or the largest cryptocurrency share of the total crypto market has stopped, hinting that alternative tokens, also known as altcoins, may outperform bitcoins.

Altcoins is any cryptocurrency that is not bitcoin.

TradingView data shows that bitcoin’s dominance has risen to 48%, up from 42% in the first quarter. It is struggling to exceed this level to date.

Altcoins have seen a massive increase in value, and the metric has been oscillating between 38% to 48% over almost two years.

In a Thursday note to clients, Markus Thielen (head of research and strategy, Matrixport), said that “Bitcoin dominance may peak, which would indicate that altcoins will outperform.”

(CoinDesk/TradingView) The previous decline in Bitcoin’s dominance from 48% coincided the boom of altcoin markets. (CoinDesk/TradingView) (CoinDesk/TradingView)

Chart shows that altcoin valuations rose by more than 60% in two months, after the BTC dominance dropped from 48% to 40% in July 2021. Altcoin values also rose after similar bearish turns in the dominance rates in mid-October and June 2022.

Thielen believes that history could repeat itself.

Thielen stated that “Bitcoin dominance seems to be at the same level as it was in 2022, accounting for 45/46% or the total cryptomarket capitalization.” “For bitcoin’s dominance to continue, it would mean that only bitcoin is important. This appears unlikely when you consider the intellectual and financial power that other chains are deploying.

He said that Bitcoin benefited from U.S. liquidity, but this could change in the future.

Sheldon Reback is the editor.