dominance

According to Caixin, Zhao Yao, a special researcher at the Payment and Clearing Research Center of the Financial Research Institute of the Chinese Academy of Social Sciences, stated that recent offshore digital asset platforms have launched on-chain trading products around Chinese technology companies such as Changxin Technology. This indicates that global digital financial platforms are creating trading exposure around high-quality Chinese technology assets, organizing price expectations, trading liquidity, and cross-border capital entry in advance. Although these products do not correspond to A-share equity, they are synthetic perpetual contracts or pre-market perpetual contracts settled in stablecoins such as USDC and USDT. However, if offshore platforms take the lead in forming a continuous trading market for technology assets, it may weaken the pricing dominance of domestic capital markets over technology assets.Zhao Yao suggested accelerating the construction of digital financial infrastructure for the renminbi, promoting the coordinated development of tokenized deposits by commercial banks, wholesale CBDC, and tokenization of technology assets, and exploring pilot projects for technology asset tokenization in Hong Kong to enhance the capital organization capability and international pricing power of the renminbi in global technology financial competition.

Strategy President and CEO Phong Le posted that over the past 4 years, driven by factors such as Bitcoin treasury companies, ETFs, institutional funds, and support from the United States, Bitcoin's dominance has continued to rise.CoinGecko charts show that BTC's dominance has steadily increased from about 39% at the beginning of 2023 to nearly 60% by mid-2025, and as of July 2026, it remains around 55%.Phong Le further pointed out that with the adoption of stablecoins, asset tokenization, large banks, and increased global support, the digital asset economy surrounding Bitcoin will continue to expand, and Bitcoin's dominance is expected to continue growing.

According to CryptoQuant analyst Darkfost, the dominant proportion of Meme coins in the altcoin market has dropped to 3.7%, the lowest level since February 2024, significantly down from a peak of over 10% in November 2024.Darkfost stated that the number of Meme coin holders is becoming increasingly scarce, marking the lowest period in the past three years, reflecting that this sector is being significantly neglected by the market.

According to Jin Shi reports, Russell Investments Senior Investment Strategist BeiChen Lin stated in a report that employment growth in the United States is expected to remain strong in June, which means inflation may continue to dominate the decision-making path of the Federal Reserve. He pointed out that if the labor market remains robust, inflation is likely to be a key factor influencing the Federal Reserve's next actions. Relevant data will be released on Thursday.

Senator Kevin Cramer stated in an interview that the U.S. Congress must immediately pass the Clarity Act, or else the cryptocurrency industry and future financial control will completely shift to other countries around the world.He emphasized, "This is not a Bitcoin issue, but a strategic issue of who controls the future of finance."

According to CoinDesk, Jim Ferraioli, Director of Digital Asset Research at Charles Schwab, stated that the recent weakness in Bitcoin is not due to a decline in institutional demand or Michael Saylor selling Bitcoin, but rather it is losing its position as the market's dominant momentum trading asset.He pointed out that crypto investors have traditionally followed momentum, and currently, momentum has left the crypto space. Funds are flowing into hot narratives such as AI-related stocks and IPOs, with SpaceX's IPO potentially valued at $1.8 trillion, and a number of other IPOs collectively raising over $200 billion, drawing liquidity away from the crypto market. Crypto traders are also speculating on pre-IPO stocks through synthetic derivative contracts on DEXs like Hyperliquid.Ferraioli downplayed the impact of Strategy selling 32 Bitcoins, believing it merely provided a convenient narrative for a broader trend that has already occurred. He noted that while Bitcoin ETFs have expanded access channels, this asset class is still primarily dominated by retail and momentum traders. Summer has historically been a season of weakness for Bitcoin, and there is currently a lack of buying reasons as investors have other options.

The crypto analysis platform Swissblock stated on platform X that Bitcoin has chosen to revert to a risk-averse mode. This is the defensive shift it had previously warned about. As the risk index accelerates into high-risk territory, the dominance of USDT has risen again, indicating that funds are rotating back to a protective mode. The observed sequence is: risk expansion, Bitcoin losing structural strength, and a rebound in USDT dominance. In this environment, the market prioritizes survival over upside potential.

Solana co-founder Anatoly Yakovenko publicly supports the development of a native perpetual contract DEX on the Solana Virtual Machine (SVM), directly challenging Hyperliquid's leading position in on-chain derivatives trading.Anatoly believes that Solana needs to build its own perpetual contract infrastructure with atomic composability, showing that the ecosystem views perpetual contracts as key to retaining user activity and on-chain trading volume. Specific project details or launch timelines have not yet been disclosed. In recent months, a large volume of perpetual contract trading has migrated to Hyperliquid, which has become the dominant protocol in the on-chain perpetual contract space.Meanwhile, Hyperliquid co-founder Jeffrey Yan is in Washington engaging with policymakers on regulatory pathways, including discussions around the CLARITY Act legislation concerning crypto derivatives regulation, which could provide an advantage to Hyperliquid if the bill passes. The Solana native alternative will directly compete by leveraging its speed and cost advantages, but Hyperliquid's existing network effects and liquidity create high barriers to entry.

According to market news, Ben O'Neill, the head of cash flow at Bridge, stated at the Consensus conference that the dominance of Tether and Circle in the stablecoin market is generally detrimental to the growth of the entire industry. He pointed out that the design choices of these two major issuers have their pros and cons, but they are not suitable for all use cases.Tether has built a dollar shadow economy independent of the U.S. financial system, while Circle's USDC follows a regulated route in the U.S. and deeply engages in DeFi. O'Neill analyzed the shortcomings of both companies from the perspective of large payment companies: Tether's redemption fee of 10 basis points is too expensive for payment companies, while Circle's continuous increase in destruction fees has a net negative impact on companies like Visa that want to handle trillions of dollars in card settlements.He believes that more stablecoins need to be built and optimized for specific use cases in the coming years, while the role of clearinghouses will rise to make exchanges between stablecoins as efficient as possible. He warned that more competition is needed; otherwise, Tether and Circle will only continue to raise fees and not share profits, making stablecoins increasingly less like money.

CryptoQuant analyst Darkfost tweeted that Bitcoin has risen over 36% since the low on February 6. Meanwhile, Bitcoin's dominance has also increased, surpassing 61.3%, returning to the high since November 2025, indicating that funds are still highly concentrated in Bitcoin.In contrast, altcoins are still under pressure but have shown early signs of stabilization. TOTAL3 (the total market capitalization of all cryptocurrencies excluding BTC and ETH) has increased by about 15% during the same period. Among the altcoins listed on Binance, 11.7% have returned above the 200-day moving average (only 2.3% on February 6), breaking the downward trend since October 2025.Additionally, the trading volume of altcoins on Binance has risen from 31% to 49% of the total trading volume of BTC and ETH, indicating that investor interest is slowly returning.

Markus Thielen, founder of 10x Research, posted on the X platform stating that Bitcoin has currently surpassed the 7-day and 30-day moving averages, with both short-term and medium-term trends remaining bullish. In the past week, it has risen by 1.1%. Continuous buying by institutions and large enterprises increasing their Bitcoin holdings has further boosted market confidence. However, influenced by the historical pattern of "selling upon good news," the market subsequently experienced a brief consolidation.Markus Thielen's analysis suggests that with Bitcoin's dominance maintaining above 60%, some altcoins are quietly bottoming out under fundamental catalysts, particularly privacy coins and RWA infrastructure-related projects that are worth paying close attention to. Additionally, the White House advisor's hints at upcoming announcements regarding national strategic reserves and other market news are reinforcing bullish sentiment.

According to Jinshi reports, U.S. Treasury Secretary Yellen stated that the dominance of the dollar and its status as a reserve currency have further strengthened.

According to Jayati Ghosh, an economics professor at the University of Manchester, in an article for the Bangkok Post, the Trump administration has vigorously promoted the deregulation of cryptocurrencies and has advocated for dollar-pegged stablecoins through the GENIUS Act, while refusing to develop central bank digital currencies. However, this series of policies is producing a self-destructive effect: by 2025, illegal cryptocurrency trading volume is expected to increase by over 160% year-on-year, with countries like Russia, Iran, and North Korea using cryptocurrencies to massively evade U.S. economic sanctions.Among them, Iran has introduced cryptocurrencies into the toll collection system of the Strait of Hormuz, with daily revenues estimated to reach up to $36 million; Russia, on the other hand, is using cryptocurrency exchanges to bypass asset freeze orders and fund military procurement.

Bitfinex released a report indicating that BTC ETFs recorded net inflows of $69.4 million and $114 million, ending a previous two-week trend of outflows. However, structurally, ARK Invest and Fidelity remain the main players, while the capital inflow for BlackRock's IBIT is limited, reflecting that institutional demand remains cautious.In addition, the funding rates in the derivatives market remained negative for most of the first quarter, indicating a continued dominance of short positions, with traders still inclined to pay for downside risk. Currently, there is a liquidation cluster below Bitcoin's price of about $66,500; if the price rises, it may trigger a short squeeze. However, overall, the market's confidence in this round of rebound remains insufficient.

According to analyst Darkfost's monitoring, since February, the estimated leverage ratio for Bitcoin on Binance has significantly dropped from 0.198 to 0.152, with a rapid and substantial decline. This trend typically occurs after strong volatility and major price movements.During this period, the price of Bitcoin fell from around $96,000 to $69,000. Such fluctuations often create panic among investors, prompting some to actively close their leveraged positions, while others are forced to exit due to liquidation. This has led to a significant reduction in open contracts, reflecting the overall deleveraging process in the derivatives market.Analysts state that if the estimated leverage ratio for Bitcoin does not rebound during the consolidation period, it may indicate that the spot market is taking over the price trend, thereby helping to stabilize the market. In many cases, these deleveraging phases can allow the market to reset on a healthier foundation. Lower leverage typically means reduced systemic pressure, which helps stabilize price action before entering a new directional trend.Note: The estimated leverage ratio for Bitcoin is used to measure the intensity of leverage used by investors, calculated by comparing the open contracts in futures with the BTC reserves held by the exchange.

According to CoinDesk, Spain's second-largest bank BBVA has announced its membership in Qivalis, becoming the 12th member bank of the Amsterdam-based stablecoin project.Qivalis aims to launch a euro-pegged regulated stablecoin, providing digital euro payment and settlement options for the EU market while challenging the dominance of dollar stablecoins. Current members of the project include major EU banks such as BNP Paribas, ING, and UniCredit, with the goal of issuing stablecoins through a banking network to provide payment channels for businesses and consumers without relying on third parties outside of blockchain or traditional financial systems.Currently, the global stablecoin market is approximately $300 billion, with only $860 million pegged to a single euro. Dollar stablecoins still dominate: Tether's USDT has a market cap of about $185 billion, while Circle Internet's USDC has a market cap of about $70 billion.

On-chain data analyst Murphy stated that the on-chain sentiment indicator RMMPC shows that the current Asian market funds have a stronger dominance over BTC prices, starting strong intervention after December 19, 2025, while also driving BTC to rebound after a second retest of $85,000. However, the current American market funds have not yet actively entered, resulting in limited rebound strength.Previously, before the market started in March 2025, Asian funds intervened first, followed by American funds, ultimately providing strong momentum for the market and significantly changing its direction.

CryptoQuant analyst Axel posted that Bitcoin is entering the Christmas market window, with market rating indicators showing bullish sentiment but not yet overheated. The short liquidations further exacerbate the asymmetric market situation favoring buyers.The derivatives market structure indicates that the current Bitcoin futures market is primarily focused on short covering, which will create mechanical buying pressure, driving prices up. The market is entering a "bullish neutrality" state, with positive expected returns.

According to DLnews, Kaiko's latest report shows that liquidity in the cryptocurrency market is overly concentrated on a few platforms like Binance, posing significant structural, operational, and legal risks. The report warns that although Binance is the largest exchange globally (with a spot trading volume of $15.3 billion and $27 billion in derivatives open interest), the platform is not formally regulated, has been convicted in the U.S. for inadequate anti-money laundering practices, and does not hold an EU MiCA license.The cryptocurrency market crash in October led to $19 billion in futures positions being liquidated, with Binance experiencing price deviations and account access issues. Kaiko researchers pointed out that if Binance were to face operational, legal, or technical shocks, it could trigger severe volatility across the entire market.