Bitcoin’s grip on the cryptocurrency market showed signs of loosening on July 23, 2020, as the flagship digital asset’s dominance ratio fell to 61.5% — its lowest level in over 12 months. The decline came amid a powerful rally in Ethereum and other alternative cryptocurrencies, fueled by the explosive growth of decentralized finance (DeFi) protocols and a broader shift in investor sentiment toward altcoins. Meanwhile, the industry’s infrastructure continued to mature, with Binance announcing a strategic partnership with German investment firm CM-Equity to expand regulated crypto trading services across Europe.
TL;DR
- Bitcoin dominance dropped to 61.5% on July 23, 2020, the lowest reading since June 2019
- Ethereum surged over 8% in 24 hours to $274.69, gaining 13% over the past week
- ETH outperformed BTC by a wide margin: +41% vs +26% over the preceding 90 days
- Binance partnered with BaFin-regulated CM-Equity AG to expand services in Germany and Europe
- ADA, LINK, and CRO posted 12-month gains ranging from 119% to 238%
The Dominance Shift
Bitcoin’s dominance ratio — which measures BTC’s share of the total cryptocurrency market capitalization — had remained comfortably above 65% for much of the preceding year. The metric’s decline to 61.5% on July 23 represented a significant shift in market dynamics, one that hadn’t been seen since June 30, 2019, when the ratio last touched the 61% level. Prior to that, it had briefly dipped to 62% on February 23, 2020.
The decline tells a story of capital rotation. While Bitcoin was up a respectable 1.6% on the day and 4.98% over the week to trade at $9,581, Ethereum and several other altcoins were dramatically outperforming. ETH gained over 8% in 24 hours and 13% over seven days. Over a 90-day window, Ethereum had surged 41% compared to Bitcoin’s 26%. Against the U.S. dollar, ETH was up 22% year-over-year while BTC was still down 2% over the same period.
Ethereum’s DeFi-Fueled Momentum
The primary driver behind Ethereum’s outperformance was the explosive growth of the decentralized finance sector. DeFi protocols — which enable lending, borrowing, and trading without traditional intermediaries — had been attracting billions of dollars in locked value throughout the summer of 2020. This demand for ETH, which serves as the native currency for gas fees and collateral across DeFi platforms, created significant upward pressure on the token’s price.
Ethereum now commanded close to 10% of the overall $285 billion crypto market cap, making it the single largest contributor to Bitcoin’s declining dominance. The ETH/BTC ratio had broken out of a one-year base, signaling what many technical analysts described as a structural shift in the relative performance of the two largest cryptocurrencies.
Altcoins Join the Party
Ethereum wasn’t the only altcoin eating into Bitcoin’s market share. Cardano (ADA), Chainlink (LINK), and Crypto.com Coin (CRO) had posted 12-month gains ranging from 119% to 238%, reflecting growing investor appetite for alternative blockchain platforms and oracle networks. Tether (USDT) had also risen to become the third-largest cryptocurrency by market capitalization, surpassing XRP, which held just over 3% of total crypto market value.
The breadth of the altcoin rally prompted discussions across social media and trading forums about the possibility of an impending “altseason” — a period when alternative digital assets see their market caps increase significantly at Bitcoin’s expense. The last such event occurred in the summer of 2017, when BTC’s dominance crashed to 37% before Bitcoin itself rallied to its then-all-time high near $19,600.
Binance Expands Into Regulated European Markets
Against this backdrop of shifting market dynamics, the cryptocurrency industry’s institutional infrastructure took a meaningful step forward. On July 23, Binance — the world’s largest digital asset exchange by trading volume — announced a strategic partnership with CM-Equity AG, a Munich-based investment firm licensed by the German Financial Supervisory Authority (BaFin) to operate proprietary trading and brokerage services for crypto assets.
The partnership enabled crypto traders and investors in Germany and Europe to access Binance’s platform through CM-Equity’s fully regulated infrastructure. Changpeng Zhao, CEO of Binance, stated that the collaboration would allow the exchange to broaden its European services while ensuring compliance with local regulations. Michael Kott, CEO of CM-Equity, praised Binance’s trading infrastructure and said the partnership would provide the best liquidity and service to European clients.
Market Snapshot: July 23, 2020
The total cryptocurrency market capitalization stood at approximately $285 billion on July 23. Bitcoin was priced at $9,581 with a market cap of $176.7 billion, while Ethereum traded at $274.69 with a market cap of $30.7 billion. Bitcoin’s dominance at 61.5% reflected a clear trend of capital flowing into alternative digital assets, particularly those connected to the burgeoning DeFi ecosystem.
Why This Matters
The events of July 23, 2020, captured a pivotal moment in the cryptocurrency market’s evolution. The declining dominance of Bitcoin wasn’t a sign of weakness in the flagship cryptocurrency — it was gaining value in absolute terms. Rather, it reflected the maturation and diversification of the broader crypto ecosystem, with Ethereum and DeFi protocols emerging as legitimate competitors for investor capital and attention. The Binance-CM-Equity partnership underscored how quickly the industry was moving to build regulated, institutional-grade infrastructure in Europe. Together, these developments signaled that the crypto market was transitioning from a Bitcoin-centric narrative to a multi-asset ecosystem — a transformation that would define the next phase of the industry’s growth.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research before making any investment decisions.
ETH outperforming BTC by 41% vs 26% over 90 days was the signal that altseason was here. DeFi protocols were printing money
LINK at 238% 12-month gain feels insane to look back on. That was the oracle era
LINK was the DeFi backbone before most people knew what an oracle was. the chainlink marines had the last laugh on that one
oracle_pilled is right. LINK at 238% gains was the quiet alpha before it became a meme. chainlink went from biz joke to actual DeFi infrastructure in like 18 months
Binance partnering with CM-Equity for BaFin regulated services was a bigger deal than people realized. Europe got ahead of the US on crypto regulation early
BaFin partnership was huge. this was pre-2022 when binance was still trying to play nice with regulators. totally different strategy now
BaFin partnership in 2020 feels like a different universe. Binance was actually trying to be compliant in Europe back then. the regulatory pivot happened fast
61.5% dominance and we thought btc was losing grip. its at what, 60%+ again years later? btc always claws back
btc dominance at 61.5% in 2020 was supposed to be the end of btc supremacy. now in 2026 its hovering what, 58-62%? plus ca change
CRO at 238% gains was pure CDC marketing spend. nobody talked about the MCO token holders who got diluted into oblivion in the swap