Bitcoin’s dominance drops to 4-year low as Ethereum takes the spotlight
In the build-up to Ethereum’s Merge upgrade, Bitcoin’s dominance has fallen to a four-year low, with the second-largest cryptocurrency by market capitalization taking the center stage.
Ethereum’s highly-anticipated Merge event is expected to occur next week. The September event, which is considered a game-changer for Ethereum, is driving capital inflow into the cryptocurrency. As a result, Bitcoin’s dominance has dropped to 38.2%, with the flagship crypto contributing $381.2 billion to the total value of the crypto market. Ethereum’s share of the market has now climbed to 20.3%, accounting for $202.8 billion of the $997.5 billion crypto market.
“Bitcoin dominance fell below 39% for the first time in four years. It appears that #Ethereum has taken the spotlight with its upcoming Merge upgrade, and Cardano is also gaining some traction with its Vasil hardfork,” said crypto trading analyst Ali Martinez.
Ethereum’s latest rally came on the heels of a recent announcement from Vitalik Buterin. The Ethereum co-founder confirmed that the Merge would likely take place between September 13 and 15.
The upgrade will mark the network’s transition from its current proof-of-work (PoW) consensus to a seemingly more efficient proof-of-stake (PoS) algorithm. Although crypto analysts are torn between the long-term impact of the upgrade on Ethereum’s market dominance and price, there is a consensus that any initial rally will be dependent on the Merge’s success.
Meanwhile, crypto trading expert Michaël van de Poppe opined that while the general crypto market is attempting to rebound, it is being blocked by assets like Bitcoin.
“The market wants to start moving upwards, but Bitcoin is blocking it. Lots of strength on ETH through the Merge, but other altcoins are slowly waking up too. Positioning yourself into longs probably is still a better R/R than shorts here.”