- Bitcoin and Ethereum have both solidified their dominance in the crypto ecosystem.
- The rebooted sentiment that led to a price surge was fueled by BlackRock’s Bitcoin ETF bid.
The global cryptocurrency market is presently overtaken by a wave of recovery that has sent the dominance of Bitcoin (BTC) and Ethereum (ETH) into new territory.
For the first time in the last two years, Ethereum’s market capitalization has surpassed that of every other altcoin. At the time of this writing, the ETH market cap is $217.83 billion, exceeding that of Solana (SOL), Cardano (ADA), Dogecoin (DOGE), Polygon (MATIC) and the rest. This feat which has not happened since February 2021 now puts ETH as the closest in dominance to BTC.
The leading cryptocurrency by market cap BTC has always topped the list, and on Tuesday, June 20th, BTC’s dominance rose with a market cap of $541.9 billion. Currently, Bitcoin’s market cap is $547.83 billion, covering almost 50% of the entire crypto market cap which is $1.1 trillion. This is a clear indication of Bitcoin’s resilience and continued investors’ appeal. Ultimately, this recent growth in their market cap shows investors increased confidence and trust in both BTC and ETH.
The sudden jump in Ether’s market cap can be attributed to several factors including the first-timer advantage which it enjoys in its niche, just like BTC. Ethereum platform is recognized as the first to implement smart contracts.
Also, it is the longest-standing protocol operating with nearly 100% reliability. Unlike some other platforms, Ethereum offers decentralization and high security making it easier for it to anchor most Decentralized Finance (DeFi) and Non-Fungible Token (NFT) projects.
Data from DeFiLlama shows that collectively, Ethereum’s DeFi protocols control over $25.2 billion of assets, representing over 50% of DeFi’s Total Value Locked (TVL). Also, there is a significantly high level of engagement for ETH through validator count. This means that the token is secured by nodes that are operated across the world, and this action improves the network’s security.
ADA, MATIC, LINK And Others Struggles as Ethereum Gains Dominance
Amidst ETH’s recent development, other altcoins are struggling to hold their value. ADA and Chainlink (LINK) have experienced negative price changes in the Week-to-Date (WTD) period.
Cardano currently has a live market cap of about $9.7 billion while that of LINK is $2.8 billion. These figures are a reflection of the fact that investors are clamouring around Bitcoin and Ethereum while other tokens suffer the brunt. Investors believe that they are safer investment options.
BlackRock’s latest request for approval from the United State Securities and Exchange Commission (SEC) to launch a spot BTC Exchange Traded Funds (ETF) has played a pivotal role in improving investors’ interest in crypto, especially BTC and ETH. Owing to its unique reputation in the asset management industry, institutional investors’s interest in crypto has been awakened by BlackRock’s move.
A survey by Laser Digital shows that about 96% of professional investors are interested in investing in crypto. Those that are yet to invest, have positive attitudes towards the nascent asset class.
