Bitcoin (BTC) Dominance Climbs Above 61% as Altcoins and Meme Coins Get Crushed: Nansen

Bitcoin BTC/USD has notably outperformed altcoins and meme coins over the recent weeks, according to a new report by on-chain data provider Nansen.

Bitcoin (CRYPTO: BTC) has notably outperformed altcoins and meme coins over the recent weeks, on-chain data reveals.

What Happened: Previous week’s crypto liquidations tallying over $2 billion mark the largest wipeout in history, according to a market analysis published on Feb. 5 by on-chain data provider Nansen.

Bitcoin recovered from an intraday low of $91,995 to over $102,591, showcasing its resilience. However, Ethereum (CRYPTO: ETH) dropped 37% in the selloff and underperformed Solana (CRYPTO: SOL).

Bitcoin dominance has climbed above 61%, reinforcing its status as the go-to asset during market crashes.

Other short-term market trends highlighted by Nansen include the following:

Meme coins and weaker altcoins continued to rally into the weekend, outperforming Bitcoin and Ethereum.

Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE) rallied 70% and 40%, respectively, in the past week.

The rally in meme coins and weaker altcoins may be coming to an end as the market begins to sell off.

Bitcoin and Ethereum are holding up better than altcoins in the selloff, with Bitcoin down 10% and Ethereum down 37%.

Solana is outperforming both Bitcoin and Ethereum in the selloff, dropping 20%.

What's Next: The overall crypto market top may not be in yet, but many altcoins have likely peaked, the report noted.

The best approach remains capital preservation and waiting for confirmed strength before re-entering.

Nansen suggests reducing exposure to meme coins and weaker altcoins, shifting funds into stablecoins.

See Also: How To Buy Bitcoin (BTC)

Price Action: BTC trades lower by 0.3% at $93,437.1 over 24 hours. ETH is down 3.7% at $103,030.9. SOL trades lower by 1.2% at $93.