Bitcoin, the flagship cryptocurrency asset, is currently in the spotlight after it saw a price rebound, which enabled BTC cross the $61,000 threshold. Following the positive move, the coin once again proved its superiority in the cryptocurrency space and strengthened its position as the most valuable digital asset, with its market share reaching peaks not seen in over 3 years.
The market is becoming increasingly dominated by Bitcoin
CryptoQuant, the leading on-chain analytics platform common positive development on the X platform (formerly Twitter), which represents the growing power and persistence of BTC in the ever-evolving and volatile world of cryptocurrencies. Bitcoin’s dominance has grown despite recent market volatility, attracting a larger share total market capitalization of digital assets.
According to the platform, compared to the market capitalization of Ethereum, the second-largest crypto asset, Bitcoin’s dominance has increased significantly, reaching a 40-month high of around 78.5%. This raise in dominance suggests that crypto investors are more interested in BTC, while Ethereum’s appeal has not kept up with this trend.
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The chart below shows how Bitcoin’s dominance has grown relative to Ethereum’s market cap, currently reaching a 40-month high with a dominance of 78.5%. This indicates that Bitcoin is in greater demand among investors, while Ethereum’s appeal has not (yet) matched that demand.
The blockchain platform revealed that BTC dominance began to grow in delayed 2022 due to growing rumors regarding Spot Bitcoin Exchange Traded Fund (ETF)which was approved in January this year and has seen significant inflows of funds since then.
Despite a similar scenario with Ethereum, this trend has not changed. This is particularly shown by the low numbers for spot Ethereum ETFwhich shows circumscribed demand for ETH.
Considering that such major events as the ICO (Initial Coin Offering) bubble and the bubble peak could change this trend as seen in 2021, CryptoQuant argues that ETH it will take an equally significant event to disrupt this trend and potentially dominate the market.
From altcoins While it is challenging to maintain momentum, BTC’s growing dominance shows that investors believe in the cryptocurrency’s long-term value, underscoring its resilience and appeal as a reliable store of value.
BTC price is experiencing bullish results
Currently, Bitcoin is showing positive momentum after bouncing off the $58,000 support level. As optimism around the crypto asset grows, it is likely to attract more profits as bulls seem to be taking control of the market once again.
In addition, thanks FOMC meeting Many analysts believe that this event, scheduled for September, will be a catalyst for price increases following the Federal Reserve’s (Fed) interest rate cut.
At the time of writing, Bitcoin has gained over 3% over the past week and is trading at $61,155. Its market capitalization and trading volume are up over 3% and 0.67% respectively over the past day.
Featured image from Unsplash, chart from Tradingview.com
