Bitcoin’s Market Dominance Reaches 40-Month High

Bitcoin (BTC), the leading cryptocurrency by market cap, has recently regained attention after a price surge pushed it above the $60,000 mark.

This increase reinforces Bitcoin’s dominance in the crypto market, cementing its status as the most valuable digital asset. Its market share has now reached levels not seen in over three years.

CryptoQuant, an on-chain analytics firm, highlighted Bitcoin’s rising influence despite the volatile nature of the crypto market. The platform noted that Bitcoin’s dominance has climbed significantly, now capturing a larger portion of the overall market capitalization for digital assets.

Bitcoin’s dominance in the market is rising, reaching a 40-month high

In the chart below, you can see how Bitcoin’s dominance has expanded relative to Ethereum’s market cap, now hitting a 40-month peak with a dominance of 78.5%. This indicates a stronger demand for Bitcoin among… pic.twitter.com/AiLjrsBP7V

— CryptoQuant.com (@cryptoquant_com) August 21, 2024

In comparison to Ethereum, the second-largest cryptocurrency, Bitcoin’s market share has reached a 40-month high of around 78.5%. This indicates a stronger demand for Bitcoin among investors, while Ethereum’s appeal has lagged behind.

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According to CryptoQuant, Bitcoin’s growing dominance began in late 2022, spurred by speculation around a Spot Bitcoin Exchange-Traded Fund (ETF). This ETF was eventually approved in January, leading to increased investments in Bitcoin. Although a similar situation exists with Ethereum, its spot ETF has not garnered the same level of interest.

CryptoQuant suggests that for Ethereum to challenge Bitcoin’s dominance, a significant event, similar to the Initial Coin Offering (ICO) boom in 2021, would be necessary. For now, Bitcoin’s increasing dominance signals investor confidence in its long-term value, highlighting its strength and reliability as a store of value, especially as altcoins struggle to maintain momentum.

Alexander Stefanov