Bitcoin Dominance and the Decline of Altcoin Participation in the Current Crypto Cycle
The cryptocurrency market in 2025 is defined by a structural shift toward Bitcoin dominance, with altcoin participation dwindling despite a $4 trillion total market cap. Bitcoin’s share of the crypto market has surged from 45.6% in 2023 to 59.3% as of 2025, driven by institutional adoption, regulatory clarity, and macroeconomic tailwinds [1]. This trend is reinforced by the Advanced Decline Index (ADI), which has plummeted since 2021, indicating that only a fraction of altcoins are contributing to market gains [2]. The ADI, calculated by subtracting declining assets from advancing ones, now reflects a “blue-chip dominance” where Bitcoin and Ethereum lead while most altcoins stagnate or decline [2].
