Bitcoin Dominance Surges Past 51%, Approaching a Two-Year High
According to data from Tradingview, Bitcoin Dominance, which measures Bitcoin’s strength relative to the total cryptocurrency market capitalization, has recently surged past 51.2%, nearing a two-year high that was last seen in late June 2023 when it reached 52%. As of now, Bitcoin’s market capitalization stands at a staggering $534 billion, while Ethereum (ETH) trails behind at $188 billion, accounting for 18% of the market. Together, these two cryptocurrencies contribute to a significant 70% of the entire cryptocurrency market capitalization.
Bitcoin’s remarkable resurgence has allowed it to outshine not only Ethereum but also numerous other major altcoins since the beginning of the year. Despite experiencing relatively less volatility over the past week, Bitcoin has managed to surge by an impressive 66% this year. In contrast, Ethereum has only seen a 32% increase in value this year and a nearly 6% decline over the past week. Currently, both are trading around $27,428 for Bitcoin and $1,573 for Ethereum.
According to André Dragosch, Head of Research at Deutsche Digital Assets, several factors contribute to Bitcoin’s effectiveness compared to altcoins and Ethereum. One such factor is the cautious approach taken by institutional investors towards the newly launched Ethereum Futures ETF in the United States last week.
In comparison to the meager $0.9 million invested in the ETF Ethereum in the past week, the capital inflow into the Bitcoin ETF reached a substantial $85.4 million at the same time, Dragosch added.
Furthermore, analysts have noted that Bitcoin has the capability to process smart contracts, a feature that the Ethereum network excels at. “The reality is that Bitcoin developer Robin Linus has published a study showing that any computational function can be executed on Bitcoin,” Dragosch stated. In other words, all the utilities provided by altcoins can be activated on the Bitcoin blockchain. This is also the perspective of the renowned Bitcoin advocate, Max Keiser, who asserts that “Ethereum offers nothing that cannot be achieved with Bitcoin.”
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