Bitcoin has solidified its position as the leading cryptocurrency by market capitalization since 2022, but the network’s transaction activity has declined.
Data shows that while Bitcoin’s share of the total crypto market has remained steady, active address usage has shifted toward Ethereum, stablecoins, and newer blockchain networks.
Bitcoin Holds Market Dominance Amid Shifting Capital Flows
In early 2022, Bitcoin accounted for approximately 60-65% of the total cryptocurrency market. This dominance persisted through a turbulent period, as capital cycled through different segments of the industry.
Alternative tokens, which collectively held 20-25% of market share at the start of 2022, surged to 50-55% by mid-2023. However, by early 2025, these alternative assets had retracted to 30%, suggesting a shift back to established cryptocurrencies, particularly Bitcoin.
Ethereum experienced a decline in market position over the same period. In early 2022, it held 20-22% of the market, but by early 2025, its share had dropped to 15%. The fluctuations in market capitalization across the industry point to a broader trend of speculative investment cycles followed by consolidation into Bitcoin.
Declining Address Dominance Reflects Reduced On-Chain Usage
Chart showing declining onchain activity for Bitcoin. Source: IntoTheBlock
While Bitcoin’s market capitalization dominance has stabilized, its share of active blockchain addresses has steadily declined. In early 2021, Bitcoin addresses represented roughly 25% of all blockchain activity. By 2025, this number had dropped to below 10%.
Ethereum maintains the highest address dominance, despite declining from 40% in early 2021 to 28% by early 2025. Meanwhile, TRON saw substantial growth, rising from 8% in 2021 to approximately 18-20% in 2025.
Telegram Open Network (TON) emerged as a major player, climbing from nearly zero in 2023 to 17% by early 2025. Stablecoins such as Tether (USDT) also saw an increase in address activity, growing from 3% in 2021 to 10% in 2025.
Bitcoin’s increasing market dominance contrasts sharply with its declining share of active users. This discrepancy highlights Bitcoin’s primary role as a store of value rather than a transactional asset. Since 2022, Bitcoin’s price appreciation has outperformed many altcoins, bolstering its market cap dominance even as its network usage wanes.
In contrast, Ethereum, TRON, and stablecoin networks are driving the bulk of on-chain activity. Ethereum continues to support a majority of decentralized finance (DeFi) transactions, gaming, and non-fungible token (NFT) markets. TRON has established itself as a major network for stablecoin transfers. USDT, which operates on multiple chains, has seen consistent growth in address dominance as stablecoin usage increases.
