Bitcoin Dominance Exceeds 51%, Approaching Two-Year High
Bitcoin, the king of the cryptocurrency market, has surged 66% this year, outpacing many other altcoins.
Bitcoin Dominance Exceeds 51%, Approaching Two-Year High. Photo: Crypto News BTC
According to Tradingview data, the Bitcoin Dominance index - which measures Bitcoin's strength relative to the total cryptocurrency market capitalization - surpassed 51.2% on October 10th, nearing the two-year high of 52% set in late June 2023. Bitcoin's market capitalization stands at $534 billion, with Ethereum (ETH) following at $188 billion, capturing 18%. Together, these two coins contribute to 70% of the total cryptocurrency market value.
Bitcoin is approaching the 52% market cap mark, screenshot from Tradingview at 09:05 AM on October 11, 2023
As a result, the price of the king coin has also outperformed Ethereum and many other major altcoins since the beginning of the year. Bitcoin, despite minimal volatility in the past seven days, has surged 66% year-to-date, while ETH has grown by 32% annually and decreased by nearly 6% this week. Currently, both are trading around $27,428 USD and $1573 USD respectively.
1D chart of BTC/USDT pair on Binance as of 09:00 AM on October 11, 2023
1D chart of ETH/USDT pair on Binance as of 09:00 AM on October 11, 2023
According to André Dragosch, Head of Research at Deutsche Digital Assets, several factors contribute to Bitcoin's efficiency compared to altcoins and Ethereum, including institutional investors' caution towards the newly launched Ethereum Futures ETF in the US last week.
Read more: Series of Ethereum futures ETFs have weak trading debut
Comparatively, while only $0.9 million USD flowed into Ethereum ETFs last week, Bitcoin ETFs attracted $85.4 million USD during the same period, Dragosch added.
Furthermore, analysts argue that Bitcoin's ability to process smart contracts, a feature Ethereum excels at, plays a crucial role.
"In fact, Bitcoin developer Robin Linus recently published a study showing that any computational function can be executed on Bitcoin."
In other words, all the utilities of altcoins can be activated on the Bitcoin blockchain. This viewpoint is also shared by prominent Bitcoin advocate Max Keiser:
"Ethereum offers nothing that cannot be achieved with Bitcoin."
