Bitcoin’s market dominance has surged past 70%, reaching 72.17% at the time of reporting—the highest level since March 2017. This resurgence raises critical questions: What does this mean for the broader cryptocurrency ecosystem? What forces are driving this shift? And where is the industry headed next?
To explore these questions, we spoke with Han Feng, co-founder of Elastos, a veteran in the blockchain space. His insights offer a compelling perspective on Bitcoin’s enduring strength and the emerging frontiers in digital assets.
Understanding Bitcoin Dominance
Bitcoin dominance—often referred to as BTC.D—measures Bitcoin’s market capitalization as a percentage of the total crypto market cap. It serves as a key indicator of investor sentiment and market structure.
Historically:
- During bear markets, Bitcoin dominance tends to rise as investors seek safety in BTC amid altcoin sell-offs.
- During bull runs, capital rotates into altcoins, causing Bitcoin’s share to dip.
Now, with Bitcoin dominance exceeding 70%, we’re witnessing a rare confluence of macroeconomic uncertainty, institutional adoption, and a lack of credible competitors—reaffirming Bitcoin’s foundational role.
Why Is Bitcoin Dominance So High?
👉 Discover how Bitcoin is becoming the digital gold standard in uncertain times.
According to Han Feng, several structural factors explain this trend:
1. Bitcoin as Digital Gold Gains Global Consensus
The narrative of Bitcoin as "digital gold" or a global, borderless, sound money is no longer niche. With rising inflation, geopolitical tensions, and currency devaluations worldwide, both retail and institutional investors are turning to Bitcoin as a hedge.
“When people feel unsafe financially, they now know to turn to Bitcoin—not just insiders, but mainstream users globally,” Han Feng notes.
This shift in perception has expanded Bitcoin’s user base far beyond early adopters, reinforcing its position as the safest store of value in the crypto ecosystem.
2. No Altcoin Has Proven Capable of Challenging BTC
Despite the rise of Ethereum, Litecoin, Bitcoin Cash, and countless other projects, none have successfully displaced Bitcoin’s core value proposition: scarcity, decentralization, and security.
Han Feng emphasizes:
“Many thought Ethereum could overtake Bitcoin. But when you look at the concept of a global, sovereign-free currency—Bitcoin still stands alone.”
While Ethereum evolved into a smart contract platform, it hasn’t replaced Bitcoin as money. The two serve different roles—BTC for value storage, ETH for programmability.
3. Ethereum’s Relative Decline Plays a Role
Han Feng also points to Ethereum’s stagnation during this cycle. While still vital, Ethereum has faced challenges: high gas fees, scalability bottlenecks, and delayed upgrades.
As innovation slows and user experience falters, capital has flowed back into Bitcoin—especially from risk-averse investors.
Investment Philosophy: Trust First, Then Act
When asked about investment strategy, Han Feng stresses belief in Bitcoin as foundational.
“If you don’t believe in Bitcoin, there’s no point entering the blockchain space.”
His personal portfolio reflects this conviction:
- Currently holds around 90% in Elastos (as a co-founder).
- But reaffirms: after future gains, he’ll convert profits back into BTC before redeploying into new ventures.
This “return to base” strategy—using Bitcoin as a safe harbor post-exit—is common among seasoned crypto investors.
Are There Still New Opportunities?
Han Feng is cautious about near-term altcoin opportunities.
“We’ve moved past the ‘hype cycle.’ Unless there’s real technological breakthroughs, most new projects are just copying what exists.”
He highlights that even in exchanges—once a hotbed for innovation—the space is now dominated by a few giants. New entrants face steep barriers unless they offer:
- Superior technology
- Access to novel asset classes (e.g., tokenized real-world assets)
👉 Explore how next-gen digital assets could reshape investing—beyond just tokens.
The Next Frontier: Data as Digital Assets
So what comes after the token craze?
Han Feng believes the next bull run won’t be fueled by speculative tokens—but by verifiable digital assets:
- Movies
- Music
- In-game items
- User-generated content
“Bitcoin is scarce and non-replicable. For any digital asset to rival it, it must exist in a trusted computing environment.”
Projects like CryptoKitties failed not because the idea was bad—but because they lacked:
- Secure execution environments
- Protection against copying
- Scalable infrastructure
True digital ownership requires more than blockchain—it needs trusted execution layers, decentralized storage, and secure communication protocols.
Who Will Lead the Next Wave?
Han Feng sees global competition heating up:
- In the U.S., projects like Blockstack have achieved regulatory clarity.
- Facebook’s (Meta) push with Libra/Diem signaled interest in user-owned data.
- In China, several teams are working on decentralized identity and data sovereignty.
While no single winner is clear yet, he predicts:
“Within 1–2 years, we’ll see practical applications emerge. It may not be one dominant player—but a coalition of innovators building the infrastructure for digital asset trading.”
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Frequently Asked Questions (FAQ)
Q: What does Bitcoin dominance above 70% indicate?
A: A dominance level above 70% typically signals risk-off behavior in the market. Investors are consolidating into Bitcoin as a safe haven, often during bearish or uncertain macroeconomic conditions.
Q: Can altcoins ever surpass Bitcoin again?
A: While altcoins may outperform during bull runs, none have matched Bitcoin’s combination of scarcity, decentralization, and network security. For now, Bitcoin remains the benchmark for digital value storage.
Q: Why hasn’t Ethereum replaced Bitcoin?
A: Ethereum serves a different purpose—it enables smart contracts and decentralized applications. But as a store of value or global currency, it hasn’t displaced Bitcoin’s first-mover advantage and brand recognition.
Q: What are trusted computing environments?
A: These are secure systems where data can be processed without being exposed or copied. They’re essential for protecting high-value digital assets like media files or personal data on blockchain networks.
Q: Is the era of new crypto projects over?
A: Not entirely—but low-effort "me-too" projects are dying out. The next wave will reward deep tech innovation: scalability, privacy, interoperability, and real-world utility.
Q: How can I prepare for the next bull market?
A: Focus on foundational assets like Bitcoin. Stay informed about emerging tech in decentralized identity, data ownership, and trusted execution layers—they may define the next cycle.
👉 See how early adopters are positioning for the next wave of blockchain innovation.
The Global Blockchain Landscape
Han Feng observes that while the U.S. leads in regulatory clarity and innovation culture, China remains a critical force in blockchain development.
Despite lower retail adoption compared to countries like South Korea (where 20–30% own crypto), China’s technical talent and infrastructure make it a key player in shaping future standards.
“Blockchain isn’t about nationality. The most successful projects will be global by design.”
As compliance frameworks mature—especially in the U.S.—the door is opening for institutional participation at scale.
Final Thoughts: What Comes Next?
Bitcoin’s dominance at multi-year highs reflects more than price movement—it’s a vote of confidence in its role as digital gold.
But Han Feng reminds us:
“The next revolution won’t be about tokens—it’ll be about owning your data.”
The convergence of blockchain, trusted computing, and digital ownership could unlock trillions in latent value—from creative works to personal information.
For investors, the lesson is clear: hold Bitcoin as your anchor, stay skeptical of hype, and watch for breakthroughs in secure digital asset ecosystems.
The future isn’t just decentralized finance—it’s decentralized identity, ownership, and value creation. And it starts with Bitcoin’s enduring strength.