Bitcoin, the leading cryptocurrency asset, is currently in the spotlight after its price recovered, causing BTC to cross the $61,000 threshold. Following the positive movement, the coin has once again demonstrated its supremacy in the cryptocurrency space and cemented its position as the most valuable digital asset, with its market share reaching a peak not seen in over 3 years.
The market is increasingly dominated by Bitcoin
CryptoQuant, a leading on-chain analytics platform shared the positive development on the X (formerly Twitter) platform, which represents the increasing power and persistence of BTC in the ever-changing and volatile world of cryptocurrencies. Bitcoin’s dominance has increased despite recent market fluctuations, making a larger portion of the total market capitalization of digital assets.
According to the platform, Bitcoin’s dominance compared to the market cap of Ethereum, the second-largest crypto asset, has grown significantly, reaching a 40-month high of around 78.5%. This increase in dominance suggests that crypto investors have more demand for BTC, while Ethereum’s appeal has failed to keep up.
The message read:
In the chart below, you can see how Bitcoin’s dominance has expanded against Ethereum’s market cap, now reaching a 40-month peak at 78.5% dominance. This indicates stronger demand for Bitcoin among investors, while Ethereum’s appeal has not (yet) been matched.
The on-chain platform revealed that BTC’s dominance began to rise in late 2022 amid growing rumors surrounding a Spot Bitcoin Exchange Traded Fund (ETF)which was approved in January of this year and has seen a significant influx since then.
Despite a similar scenario happening with Ethereum, this trend has not changed. This is particularly demonstrated by the low numbers for the spot Ethereum ETFwhich indicates the limited demand for ETH.
Since major events such as the Initial Coin Offering (ICO) bubble and the peak of the bubble could change this trend as seen in 2021, CryptoQuant claims that ETH will have to experience an equally significant event to break this trend and potentially dominate the market.
Since altcoins While momentum is difficult to maintain, BTC’s increasing dominance underscores investor confidence in the cryptocurrency’s long-term value, highlighting its resilience and appeal as a reliable store of value.
BTC Price Experiences Bullish Performance
Currently, Bitcoin is showing positive momentum after recovering from the $58,000 support level. With growing optimism around the crypto asset, it is likely to see more gains as the bulls seem to have regained control of the market.
Moreover, with the FOMC meeting Several analysts believe that the September event will serve as a catalyst for a price increase once the Federal Reserve (FED) cuts interest rates.
At the time of writing, Bitcoin had seen gains of over 3% over the past week and was trading at $61,155. Its market cap and trading volume have also increased by over 3% and 0.67% respectively over the past day.
Main image from Unsplash, chart from Tradingview.com