- With a market value of 590 billion dollars, the world’s leading cryptocurrency, Ethereum, has further strengthened against smaller alternative cryptocurrencies.
- These developments coincide with news of increased regulatory oversight by US regulators.
- Coin Metrics reported in its report that Bitcoin’s dominance has consistently declined in the spring of 2021 and reached its lowest level in January 2022.
According to current data, Bitcoin’s relative percentage in terms of total cryptocurrency market value has reached the highest level in the past 2 years.
Bitcoin Market Dominance at 2-Year Peak
According to a new report by Coin Metrics, Bitcoin’s relative percentage in terms of total cryptocurrency market value has reached 58%, which is the highest level since April 2021.
With a market value of 590 billion dollars, the world’s leading cryptocurrency, Ethereum, has further strengthened against smaller alternative cryptocurrencies. The total market value of the sector has been determined as 1.2 trillion dollars.
These developments coincide with news of increased regulatory oversight by US regulators. US regulators claiming that several cryptocurrencies are unregulated securities have caused many cryptocurrencies to lose billions of dollars in market value.
Bitcoin led a strong rally last week after BlackRock applied for a spot Bitcoin exchange-traded fund (ETF). The Wall Street giant increased Bitcoin’s dominance in the cryptocurrency market and encouraged investors to buy assets despite many previously rejected ETF applications.
This price increase has also affected other assets such as Grayscale Bitcoin Trust (GBTC). The difference between GBTC’s share price, known as the “GBTC discount,” and the net asset value (NAV) of Bitcoin it holds has fallen to monthly lows with a decrease of up to 30%, according to YCharts.
Coin Metrics, an open-source blockchain data analytics platform, stated in its report that Bitcoin’s dominance has consistently declined in the spring of 2021 and reached its lowest level in January 2022. At that time, Bitcoin accounted for 37% of the global cryptocurrency market value.
The report also shows that Bitcoin’s presence in Coin Metrics’ CBMI 10 index, which is created for the top 10 cryptocurrencies, has reached the highest level in the past 2 years, with a rate of 65%. However, this metric does not include stablecoins like Tether (USDT) or USDC.
Bitcoin has increased in value by 80% since the beginning of the year and is currently trading at $30,040.
Bitcoin Investors Unable to Sustain the Momentum of ETF Applications
Although a series of spot Bitcoin ETF applications led by BlackRock caused a rise in BTC price, the rally could not be sustained, and the BTC price declined to the 30,000 dollar levels. In recent days, the price briefly rose above $31,000 but failed to hold.
After the Bitcoin ETF application frenzy, the market slowed down, and BTC.D, which is Bitcoin’s dominance, reached 52%. However, ongoing SEC pressures and statements by the Fed Chairman are playing a leading role in suppressing prices.
