Bitcoin Dominance and User Activity

The Bitcoin dominance has been steadily increasing since 2022, marking one of the longest periods of sustained growth in its history, while active users decline. Recent statistics from IntoTheBlock indicate that BTC maintains robust market dominance even as new alternative assets enter the market. The dominance chart shows Bitcoin retaining authority over the top 300 tokens by market share, emphasizing its position as the leading cryptographic asset.

> Bitcoin’s market dominance has been on a steady rise since 2022, marking one of the longest periods of sustained growth on record.
>
> However, when measuring by active users, Bitcoin’s share has declined as more on-chain activity gravitates toward Ethereum and other Layer 1 networks.
> — IntoTheBlock (@intotheblock) March 12, 2025

This increased dominance does not capture the full reality. While Bitcoin attracts continuous capital investments, its position among active addresses has decreased. This decline indicates that Ethereum and other Layer-1 blockchains are collectively gaining more active users than Bitcoin.

Ethereum and Altcoins Capture More Active Users

Bitcoin retains a large market share, but Ethereum (ETH) and other Layer-1 networks are experiencing steady growth in active user numbers. A downward trend in BTC address ownership began in 2021, reflecting Ethereum’s higher user interaction compared to Bitcoin. TRX, alongside TON and AVAX, demonstrates users’ preference for alternative blockchains.

The shift away from Bitcoin stems from three main factors: Ethereum’s Decentralized Finance (DeFi) sector, lower fees on alternative networks, and enhanced capabilities of smart contract ecosystems. The implementation of Ethereum’s staking mechanism and the growing adoption of rollups may diminish BTC’s transactional capabilities, despite its increasing market capitalization.

Institutional Capital vs. Retail Activity: A Diverging Trend

Bitcoin’s growth is largely supported by institutional investors and long-term holders, while retail investors explore dynamic blockchain environments. BTC’s consolidation as a store of value appears to limit its role in everyday transactions.

On the other hand, the Ethereum platform sustains its active user base through ongoing developer efforts, vibrant DeFi innovations, and thriving NFT activities. The widening gap between incoming market capital and user activity could influence the crypto market’s evolution.

Final Thoughts: What’s Next for Bitcoin and Crypto?

The crypto market still regards Bitcoin as the leading force, despite its decreasing share of active users who view it predominantly as a digital gold. The transaction-oriented features of Ethereum and alternative coins attract a growing retail user base. BTC’s future in the evolving market remains uncertain, as it may adapt or cede ground to competing platforms.