Bitcoin’s market capitalization now accounts for over 55.05% of the total market share—its highest level in three years. Bitcoin's market capitalization has soared to $1.27 trillion, according to CoinMarketCap. In comparison, the entire crypto market is valued at $2.43 trillion, with Ethereum representing 16.5% of the market at $389 billion.

This year’s rise in Bitcoin dominance is somewhat unexpected. Typically, altcoins outperform Bitcoin during bull markets. While meme coins did experience a resurgence earlier this year as Bitcoin reached new all-time highs, other cryptocurrencies didn’t benefit as much from the so-called "wealth effect."

Meltem Demirors, former chief strategy officer at CoinShares, highlighted a key factor influencing this shift on Twitter: “ETF flows fundamentally altering market dynamics. No longer do BTC gains cycle into alts and the longer tail of crypto assets.”

Bitcoin's dominance has continued to grow despite the increasing market cap of Tether (USDT), the world's largest stablecoin and the third-largest cryptocurrency after Bitcoin and Ethereum. Stablecoins, backed by fiat currencies, are often excluded from Bitcoin dominance metrics due to their different value models.

Despite the underwhelming performance of altcoins, there is optimism for their potential resurgence. CryptoQuant CEO Ki Young Ju noted on Tuesday that whales are preparing for the next altcoin rally, as there has been an increase in limit buy orders for non-Bitcoin and non-Ethereum assets.

Ki Young Ju shared a chart illustrating that the cumulative buy-sell volume difference has been on the rise for several months. This indicator measures the difference between buy and sell orders over a year, creating levels of resistance and support. When the trend is upward, it indicates more people are placing buy orders, reflecting strong buying interest.