Bitcoin Dominance Declines: Could XRP Be Poised for a Surge?

Market data suggests that the recent shifts in Bitcoin’s dominance could have positive impacts on major altcoins such as XRP. Bitcoin’s share of the total cryptocurrency market has reduced due to recent market pressure. Analysts are watching closely to observe historical patterns that link Bitcoin’s declining dominance to periods of strong performance for XRP.

Bitcoin Dominance Decreases 

As earlier mentioned, the past several months have seen the broader cryptocurrency market under pressure, with prices struggling to regain sustained momentum. During this time, Bitcoin showed notable weakness compared to the altcoin market. 

This has contributed to a steady decline in Bitcoin’s dominance ratio, a metric that measures Bitcoin’s market capitalization as a percentage of the overall crypto market.

Since July 2025, Bitcoin’s dominance has fallen from approximately 65.2% to around 59.3%, a decline of roughly 9% over seven months. This drop is a result of general market weakness. It also means that Bitcoin has lost market share to other assets during the downturn.

Technical Indicators 

Data from TradingView shows that the total market capitalization of altcoins, excluding Bitcoin (TOTAL2), declined from about $1.15 trillion in July 2025 to roughly $946 billion, a decrease of 17.7%. 

At the same time, Bitcoin’s market capitalization fell more sharply, dropping by approximately 35% from $2.13 trillion to around $1.38 trillion. This imbalance indicates that Bitcoin has underperformed relative to the broader altcoin market.

As a result of this relative weakness, Bitcoin’s dominance has entered a consolidation phase. According to technical analysis shared by CryptoInsightUK, the dominance ratio is now showing signs of compression, particularly on the weekly timeframe. This compression is reflected in the narrowing of Bollinger Bands, which is a common volatility indicator.

The analyst noted that the current Bollinger Band structure around Bitcoin dominance appears unusually tight, suggesting a period of reduced volatility that comes before a sharp directional move. He further indicated that similar compression may soon become visible on the monthly chart, which would increase the significance of any subsequent breakout.

While the direction of the eventual move remains uncertain, historical behavior reflects that a downward resolution in Bitcoin dominance could favor altcoins. In this case, XRP has drawn particular attention due to its liquidity and past responsiveness to changes in dominance dynamics.

What This Means for XRP

CryptoInsightUK highlighted a prior instance in late 2024 when Bitcoin’s dominance declined by approximately 11%, falling from 61.53% to 54.56%. During that same period, XRP experienced a substantial price increase, rising by roughly 490% to reach $2.90. This historical overlap has strengthened the argument that XRP tends to perform strongly during periods when Bitcoin’s dominance weakens.

Based on this pattern, the analyst emphasized that heightened volatility in Bitcoin dominance could have a significant influence on XRP’s price action. Although he did not predict a specific outcome, he pointed out that previous declines in Bitcoin dominance have consistently coincided with sharp XRP rallies.

The market remains in a consolidation phase, and no definitive breakout has occurred. However, the ongoing compression in Bitcoin dominance suggests the possibility of an incoming decisive move. If the token’s dominance continues to decline, market participants may see increased capital rotation into altcoins, especially with XRP positioned as a potential beneficiary. 

As at the time of writing, there is still no clear evidence of a directional move; as such, the relationship between Bitcoin dominance and XRP performance remains a key area of observation. Investors should remain focused until there is confirmation from market structure and volatility indicators. 

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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