Bitcoin, the flagship crypto asset, is currently in the spotlight after experiencing a price recovery, allowing it to Bitcoin breaking through the $61,000 threshold. Following this positive move, the coin has once again demonstrated its supremacy in the cryptocurrency space and has consolidated its position as the most valuable digital asset, with a market share that has reached a peak not seen in more than three years.
The market is increasingly dominated by Bitcoin
CryptoQuant, a leading on-chain analytics platform shared The positive development on the X platform (formerly Twitter), which represents the growing power and tenacity of BTC in the volatile and ever-evolving world of cryptocurrencies. Bitcoin dominance has increased despite recent market fluctuations, attracting increased participation from the Total market capitalization of digital assets.
According to the platform, compared to the market cap of Ethereum, the second-largest crypto asset, Bitcoin’s dominance has grown significantly, reaching a 40-month high of approximately 78.5%. This increase in dominance suggests that crypto investors have a higher demand for BTC, while Ethereum’s attractiveness has failed to keep pace.
The message read:
In the chart below, you can see how Bitcoin’s dominance has expanded relative to Ethereum’s market cap, now reaching a 40-month peak of 78.5% dominance. This indicates increased demand for Bitcoin among investors, while Ethereum’s appeal hasn’t matched (yet).
The on-chain platform revealed that BTC dominance began to rise in late 2022 due to growing rumors surrounding a Bitcoin Spot Exchange Traded Fund (ETF)which was subsequently approved in January of this year and has since seen significant capital inflows.
Although a similar scenario occurs with Ethereum, this trend has not yet changed. In particular, this is demonstrated by the low figures of the Ethereum Spot ETFwhich shows the restricted demand for ETH.
Since major events like the Initial Coin Offering (ICO) bubble and the bubble peak can alter this trend as seen in 2021, CryptoQuant argues that Ethnicity An equally significant event will be needed to counter this trend and potentially dominate the market.
From alternative currencies Despite struggles to maintain its momentum, BTC’s growing dominance highlights investor confidence in the cryptocurrency’s long-term value, underscoring its resilience and appeal as a reliable store of value.
BTC price experiences bullish performance
At the moment, Bitcoin The cryptocurrency is showing positive momentum after rebounding from the $58,000 support level. With the growing optimism surrounding the cryptoasset, it is likely to attract more gains as the bulls seem to have taken control of the market once again.
In addition, with the FOMC Meeting In September, several analysts believe that the event will serve as a catalyst for a price increase once the Federal Reserve (FED) reduces rates.
At the time of writing, Bitcoin had gained over 3% over the past week and was trading at $61,155. Its market cap and trading volume also increased by over 3% and 0.67% respectively over the past day.
Featured image from Unsplash, chart from Tradingview.com
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