Ether dominance rises as Altcoins outperform Bitcoin - Blockworks

Ether dominance rises as Altcoins outperform Bitcoin – Blockworks

  • Ether now makes up 18.7% of all cryptocurrencies, its highest point since May
  • Bitcoin’s dominance declined slightly after the leading cryptocurrency outperformed the top digital assets

Cryptocurrency prices have – finally – shone bright green over the past week, giving the industry a long-awaited recovery from the ongoing bear market brutality.

Digital assets have added nearly 16% to its collective capitalization since last Friday, and represent nearly $143 billion in nominal terms.

In total, the cryptocurrency is now worth $1.045 trillion, per TradingView’s Total Crypto Index, down 52% from the beginning of the year.

But gains were seen practically across the board, with nearly all of the top 100 cryptocurrencies by market capitalization in place.

LDO, the governance token for the Lido liquid staking community, led the pack with an 80% price explosion. The project this week pledged to expand across the entire Ethereum layer-2 landscape.

Long-serving blockchain forks came in second and third. Ethereum Classic (ETC) price is up 75% amid speculation that ether miners may move to the network following the impending switch to Proof of Stake, while Bitcoin Gold (BTG) has added 50% to its price without any clear narration.

LDO, ETC, and BTG were respectively 46%, 24% and 42% below their respective prices since the beginning of the year, as of 12pm ET.

Stablecoin’s Dominance Is Shrinking Along With Bitcoin

ApeCoin (APE) from Yuga Labs, which is set to run the upcoming metaverse at Otherside, grew 43% on the back of the well-accepted demo; The original GNO token for the Gnosis DeFi ecosystem jumped 38%; Ether (ETH) is up 35%.

Recent data from Glassnode shows that ether deposits on crypto exchanges have hit a four-year low as network consolidation nodes holders pile in anticipation of returns. On the other hand, Bitcoin (BTC) is up 15% – from around $20,600 to $23,700.

APE, GNO, and ETH are down 22%, 73% and 56%, respectively, in the year to date. Bitcoin’s price is down 49% so far in 2022, which was determined by some of the most turbulent macroeconomic conditions in the past few decades.

“Yes, the European Bank is raising interest rates for the first time in a long time. Yes, the Federal Reserve is also raising rates. And yes, liquidity is getting tighter.” Ganesh Swami, CEO of blockchain data firm Covalent, said this is penalizing Bitcoin and risking assets in general.

Swami added: “It will remain difficult until the Fed can bring down inflation, or if the Fed gives up on fighting inflation. Either way, the few months are likely to be tough for the markets, especially if the energy crisis in Europe worsens.”

Bitcoin is expected to rally once quantitative easing finally resumes.

However, only three of the top 100 cryptocurrencies (without stablecoins and rolled tokens) have lost their value over the past week.

Arweave, the token driving the decentralized storage protocol of the same name, is down 1%; Decentralized Exchange Token (DEX) backed by Solana has decreased by 4%; Ceek VR digital assets sank nearly 21%.

In fact, the recent rally of Ether has pushed its dominance (which measures the size of the ETH digital asset market) to its highest point since May, having jumped 16.5 percentage points to 18.7%. Bitcoin dominance has declined slightly, from 43.5% to 43.1%.

The dominance of the stablecoin has also eased as traders exit their safe havens in search of profits. The four largest stablecoins – Tether, USD Coin, Binance USD and MakerDAO – together made up 14.2% of the cryptocurrency last Friday; Now down to 12.35%.


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  • David Kanellis

    blockworks

    editor

    David Canellis is an Amsterdam-based editor and journalist who has covered the crypto industry full-time since 2018. He focuses heavily on data-driven reporting to identify and map trends within the ecosystem, from bitcoin to DeFi, crypto stocks to NFTs and beyond. Contact David by email at [email protected]

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