- Bitcoin accounts for about 48% of the total cryptocurrency market capitalization
- When combined with Ethereum and Tether, their share rises to roughly 75%
- The market share of many other cryptocurrencies has declined despite the recent market rally
The cryptocurrency market recovered strongly in early 2023, launching a broad rally that has continued through the first months of the year. As of this recovery, Bitcoin has surged approximately 77.6% year-to-date, an impressive gain in just four months.
While Bitcoin led the rebound, other digital assets also contributed to the overall market recovery, reflected in the rise in total crypto market capitalization. After falling to around $755 billion at the end of 2022 during a prolonged bear market, the total market value has climbed to about $1.16 trillion.
This rebound indicates renewed investor confidence in the crypto sector following the fallout from the FTX collapse and a string of high-profile frauds and failures that shook the industry last year.
Beyond Bitcoin, two tokens stand out as major holdings for investors: Ethereum and Tether.
Ethereum and Tether keep pace with Bitcoin
The market dominance chart illustrates each asset’s share of total cryptocurrency market capitalization. Bitcoin remains the largest, holding roughly 48.58% of the market.
Bitcoin’s dominance has increased from about 40% at the end of 2022, largely at the expense of many smaller tokens including USD Coin and Solana. Even Binance Coin has seen its share shrink, currently around 4.31%.
Only Ethereum and Tether have maintained or grown their positions alongside Bitcoin. Ethereum’s market share remained relatively stable throughout the 2022 downturn, and Tether—being the largest stablecoin by market cap—also retained its share during the bearish phase.
Together, Bitcoin, Ethereum, and Tether represent approximately 75% of the total cryptocurrency market capitalization. This concentration is an important consideration for investors evaluating portfolio exposure, diversification, and risk when entering or reallocating within the crypto market.