Tag: Market Dominance

Bullish Signal? Ethereum Market Dominance Sitting Above 20%

by NEWSBTC

In the last five years, Ethereum has not only taken a significant market share from bitcoin, but it has consistently grown in the same time period. While bitcoin had maintained the majority of the market dominance for the longest time, it has not taken altcoins a long time to come for the majority share. In fact, this year, the market dominance of bitcoin feller 50%.

As ethereum’s market dominance has grown, it is important to look at what this might mean for the digital asset and how it may play out in the future. Ethereum has no doubt had an incredible run this year but does growing market dominance indicate a continuous rally?

Related Reading | Only In Crypto: A Croissant Explains Web3 And NFTs To Elon Musk

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Ethereum Dominance On The Rise

Ethereum’s market cap had grown as a result of the price surge that the digital asset recorded this year. At almost $500 billion, it remains at only about half of bitcoin’s market cap but has grown to become one of the most valuable assets in the world. Following this, the market dominance of the altcoin has also risen as adoption of the asset had grown rapidly.

In the space of a year, the market dominance of the asset has grown 10%, taking most of the share from bitcoin. This has been an indicator of how much the cryptocurrency had grown, as well as some long-term implications.

Ethereum price chart from TradingView.com

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ETH trading at $3,918 | Source: ETHUSD on TradingView.com

As ethereum continues to maintain such a large dominance of the market, it solidifies its place as one of the most valuable cryptocurrencies in the space. With its numerous use cases such as DeFi and NFTs, in addition to its real-world applications, it is expected that ethereum will continue to see a larger share of the market dominance.

What this will mean for the altcoin is pretty simple. With this kind of rapid adoption will come more demand and as the ETH burn continues to reduce the supply of coins in the market, the value of the digital asset could be hitting new highs in the coming months.

Altcoins Taking Control Of The Market

In a recent report from TradingPlatforms, it is outlined that altcoins have tripled their market dominance in the last seven years. At one point, bitcoin maintained over 90% of the market dominance. However, as more altcoins like ethereum have grown into prominence and seen rising adoption, this number has dropped significantly.

The report states that the rise in altcoin dominance has been a result of a mindset shift when it comes to cryptocurrencies. Many investors believe that bitcoin has already grown too much and is too expensive and as such, are looking at what they believe to be ‘the next bitcoin.’ This has led to the adoption of altcoins as an alternative to bitcoin.

Related Reading | Crypto Research Analyst Puts Ethereum At $9,000 In Six Months

The author also notes that higher market dominance translates to higher market caps, which in turn plays a major role when it comes to how a cryptocurrency is ranked. Investors will usually look at market caps to determine if a cryptocurrency is ‘safe’ to invest in and “in essence, it’s a pointer to how stable the asset is,” the report reads.

Going by this, ethereum may be headed for higher adoption as more investors look towards its market dominance as an indicator of its stability. This points to bullish tendencies as the new year rolls around.

Featured image from ElevenNews, chart from TradingView.com

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Why A Shocking Altcoin Season Could Be On The Horizon

by NEWSBTC

Altcoin season is a phrase that is quite popular throughout the crypto market. The phrase refers to the run-up in the prices of altcoins after the price of bitcoin slows down. The altcoins usually see an uptick in their individual and collective market dominance, taking even more market share from the top cryptocurrency, bitcoin.

As the coins become more valuable, their prices soar following the increased market share. An altcoin season usually sees most of the altcoins in the market rallying at the same time. With Ethereum’s price mostly leading the charge once the prices start surging.

Related Reading | Here’s What Happens To All Of The Crypto Assets The IRS Seizes

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At this point, altcoin prices are no longer following the price of bitcoin as they usually do in the market. Altcoins break away from bitcoin for a period of time and their prices move independently of the cop coin. Now, indications are pointing that an altcoin season is on the horizon. Movement on the charts point to the possibility of this following the current bull rally.

Bitcoin Market Dominance Continues To Decline

Bitcoin has held a majority share of the market dominance for the longest time. Over the years, this market dominance has seen a declining trend as coins like Ethereum gained more popularity amongst investors in the market. From an over 95% dominance, BTC dominance has gone down over the years to now sit at less than 50%.

Bitcoin market dominance chart from TradingView.com

Bitcoin market dominance chart from TradingView.com


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Bitcoin market dominance continues to decline | Source: Market Cap BTC Dominance from TradingView.com

Ethereum continues to steal more market share from the pioneer cryptocurrency following each bull market.  Steadily trailing behind bitcoin. Altcoins now collectively have over 50% of market dominance, which puts them in a significant position to start growing their prices on their own terms. Instead of being eternally connected to the price movements of BTC.

Ethereum alone now has over 20% of market dominance, a little less than half of what bitcoin has. Bitcoin market dominance has shown declining trends presently, and this puts alts in a position to see an uptick in their market prices, regardless of what direction the price of bitcoin takes.

Related Reading | Bitcoin Accumulation Patterns Shows Rally Might Only Be In Its Early Stages

Indicators like a broken rising wedge show that bitcoin’s current market dominance is headed for another retest. After this retest will most likely come a decline in the dominance percentage. Giving way for altcoins to take more market share from bitcoin. And as bitcoin continues to move in a perfect downtrend, alts are set to explode following this.

Altcoins On A Run-Up

Altcoins have so far continued to do well in the market. The recent rally hasn’t been limited to bitcoin alone. Alts all across the market continue to record massive gains on a daily. With some coins recording as much as a 15% price uptick in 24-hour periods as the rally rages on.

Related Reading | Ethereum Set To Explode According To Market Dominance, Crypto Analyst

Increase alt dominance in the market will see alts prices continue to go up even way past when the price of BTC has lost momentum. Investors are always looking for the next big thing and it usually seems to most that they have missed the boat on bitcoin. Hence, they tend to focus on alts in order to find the next coin that will give the same returns bitcoin has given.

This interest in the search for the next bitcoin has been one of the driving forces behind the high values of a lot of altcoins. Also, interesting technologies being built to back up altcoins emerging into the market sees investors putting money into these projects because of the promise of the technologies.

Featured image from Vecteezy, chart from TradingView.com

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Bitcoin Market Dominance Falls As $55k Resistance Pushes Alt-season

by NEWSBTC

The crypto market saw high gains for the second day after the weekend sell-off that caused the market to look like a bloodbath.

Data from TradingView showed that Bitcoin rose above $54,000 in the early trading hours of Tuesday. As of writing, the pioneer cryptocurrency is trading at $55,152, a gain of 4.08% in the last 24 hours. It appears that bulls are aiming to break the $55,000 resistance to allow for a possible rally to $58,000.

Bitcoin Eyes $58k

Organic growth has resumed in the BTC market.  The spot-driven BTC bounce back looks sustainable. 

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In a tweet on April 27, analyst Lex Moskovski noted that futures funding rates are suggesting this week’s BTC price run has been completely organic.

Funding rates are a popular metric for measuring the health of BTC price movements. They essentially show which traders are on the right side of the bet (long or short) — a high funding rate on a platform means longs are “paying” shorts, while low funding rates imply the opposite.

Negative rates are what analysts look for when determining if any upside is likely to endure, or is due in the short term.

Currently, conditions are right — the move up to $55,000 was likely not fueled by speculative trading action, says Moskovski.

“Funding is very low and healthy. This run up in Bitcoin came from spot and looks sustainable.” he wrote.

Related article | Bitcoin Funding Rates Fall Flat For Weeks As Market Takes Pause

Alt Season In Full Swing

Despite Bitcoin promise to rise in a few days, many of the alt coins are witnessing tremendous growth in price.

Lower gas fees following the Ethereum network’s Berlin upgrade along with an increase in institutional buying and decentralized finance activity lifted the price of Ether to a new all-time high at $2,680.

Several altcoins saw their prices reach new record highs alongside Ether on Tuesday.

XRP registered a significant price hike in the past 24-hours of an impressive 27 percent. The coin traded at $1.43 and was inching closer to resistance at $1.5; there are also two strong supports at $1.25 and $1.03 if a trend reversal were to take place.

Aave’s price rose by 5 percent in the past 24-hours and traded at $402 with a 24-hour trading volume of $636 million. The coin is likely to come in contact with a strong resistance of $415 – a level last breached on 18 April.

Dogecoin has now become a top-10 staple in the crypto market. In the past day’s time, DOGE saw a marginal improvement in price and was trading at $0.26. Unlike the remaining coins, DOGE’s price action remained extremely range-bound, trading between support at $0.25 and resistance at $0.30.

Related article | Ethereum Gains Momentum, Here’s Here Chances of a Run To $3K

Polygon (MATIC) continued its strong rally, moving as high as $0.75 before taking what appears to be a short breather. Uniswap (UNI) also saw its token price reach a record high at $40.50 following a 17% rally from the lows on April 26.

The overall cryptocurrency market cap now stands at $2.08 trillion and Bitcoin’s dominance rate is 49.81%.

Featured image from Pixabay, Charts from Tradingview.com and Coin360

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Bitcoin dominance is about to drop below 50% for the first time in 3 years

by Cointelegraph

Bitcoin (BTC) revisited recent lows near $52,000 on April 22 as sustained weakness continued for the largest cryptocurrency.

BTC/USD 1-hour candle chart (Bitstamp). Source: Tradingview

Traders await altcoin “magic”

Cointelegraph Markets Pro and Tradingview revealed a lackluster day for BTC traders as BTC/USD briefly dipped below $53,000 before stabilizing around $1,000 higher. 

The move came as Bitcoin was about to lose its market cap dominance supremacy to altcoins in what traditionally marks the “real” start of “alt season.”

Charts from on-chain monitoring resource CoinMarketCap showed that as of Thursday, Bitcoin’s share of the overall cryptocurrency market cap stood at just 50.1%.

Having decreased sharply this year despite its own price gains, Bitcoin’s market cap share versus altcoins looked set to break through support which has held for over three years.

Looking at historical behavior, each time Bitcoin loses the 50% mark, altcoins rapidly move in to pick up the slack, often led by Ether (ETH).

The reshuffling thus sparks an altcoin run which truly fits the description of “alt season” — rapid gains to a peak, followed by a cooling-off period as Bitcoin regains some lost ground. This was the case in both mid 2017 and early 2018.

Cryptocurrency market cap share chart. Source: CoinMarketCap

Should history repeat itself, it would be music to the ears of altcoin investors, many of whom have long claimed that “alt season” is already underway but has yet to show its true colors.

A race to the top this time around could surprise even them, meanwhile, as many altcoins have already put in unbelievable performances in 2021.

“BTC dominance 51.6%. The magic starts when 50% breaks,” popular Twitter account CryptoBull summarized last week.

Market breaks Dogecoin’s spell

At the time of writing, Ether in particular was showing no signs of weakness in the face of fresh wobbles for BTC/USD, gaining 6% in 24 hours to approach $2,500 once again.

Others were less optimistic, with the top 50 cryptocurrencies mostly down on the day.

Dogecoin (DOGE), previously the star of the show, continued its slip after hitting all-time highs of $0.44 on some exchanges. DOGE/USD was already down 40% versus the high on Thursday.

DOGE/USD 1-hour candle chart (Bittrex). Source: Tradingview