Bitcoin Could Rally to $150,000 by Late 2026 Despite Eroding Market Dominance, Says Dragonfly Partner

According to recent insights from a Dragonfly managing partner, the cryptocurrency market faces an intriguing paradox in 2026. While Bitcoin is projected to achieve significant price appreciation, reaching $150,000, its grip on the broader digital asset ecosystem is expected to weaken.

Current State of the Market

Bitcoin currently trades around $90.69K with a commanding 55.92% market dominance. This substantial position reflects BTC’s enduring role as the market’s flagship asset and store-of-value narrative. However, the outlook for this dominance tells a different story.

Price Growth vs. Market Share Erosion

The Dragonfly partner’s analysis highlights a critical market dynamic: strong Bitcoin price performance doesn’t necessarily translate to growing market share. As BTC climbs toward the $150,000 level, alternative cryptocurrencies and emerging blockchain ecosystems are expected to capture a larger slice of total market capitalization.

This divergence reflects several underlying trends. Institutional adoption of Bitcoin may continue accelerating, driving price discovery upward. Simultaneously, other Layer-1 blockchains, DeFi protocols, and emerging use cases are likely attracting capital flows, gradually reducing Bitcoin’s relative proportion of the total crypto market value.

What This Means for the Ecosystem

The 2026 outlook suggests a maturing digital asset landscape where Bitcoin strengthens as a macro asset while becoming a smaller percentage of an expanding overall market. This pattern mirrors traditional financial markets, where dominant players can see their market share decline even as their absolute value grows.

Investors positioning for this scenario may need to balance core Bitcoin holdings with diversified exposure to other blockchain ecosystems that could capture growth opportunities as the market evolves beyond pure store-of-value narratives.