Ethereum

Bitcoin

when

Coin

<h2 id="key-points">Key Points</h2> 
<ul> 
 <li>Ethereum’s market dominance has decreased to 13%, reflecting a decreased demand, increased supply, and Bitcoin’s rising dominance.</li> 
 <li>Bitcoin has outperformed Ethereum over the past year, with Bitcoin gaining over 120% YoY and Ethereum only around 50%.</li> 
</ul>  
<p>Ethereum’s market dominance has dipped to lows of around 13%.<br> This decline follows a decrease in demand, an increase in supply, and the rising dominance of <a href="https://coineagle.com/price/bitcoin/">Bitcoin</a>.</p> 
<h2 id="ethereum-s-underperformance">Ethereum’s Underperformance</h2> 
<p>Over the past year, <a href="https://coineagle.com/price/ethereum/">Ethereum</a> has underperformed when compared to Bitcoin. For instance, Bitcoin has seen a YoY gain of over 120%, while Ethereum has only gained around 50%.<br> This underperformance has led to a significant drop in Ethereum’s market dominance, which currently stands at 13.85%, a significant decrease from its yearly high of nearly 20%.</p> 
<p>Several factors have contributed to this decline in Ethereum’s dominance and its underperformance against Bitcoin.<br> One of these factors is the rising dominance of Bitcoin, which has seen a significant increase this year. High demand for spot Bitcoin ETFs has been a key trigger for this rise in dominance.</p> 
<h2 id="ethereum-s-declining-dominance">Ethereum’s Declining Dominance</h2> 
<p>Another factor contributing to Ethereum’s declining dominance is the selling activity of whales.<br> For example, on October 8th, a large address that participated in the 2014 Initial Coin Offering (ICO) deposited 5,000 ETH to Kraken, valued at $12M.<br> This whale has deposited around 50,000 ETH valued at $125M to exchanges in the last two weeks.</p> 
<p>In addition, the Ethereum Foundation has been selling off its holdings since the beginning of the year, contributing to Ethereum’s underperformance.<br> If this uptick in whale selling activity continues without a corresponding rise in demand, ETH could continue trading rangebound if new buyers fail to enter the market.</p> 
<p>Unlike Bitcoin, Ethereum has seen low demand for its spot ETFs.<br> Since these ETFs launched in July, they have recorded $849M in outflows, largely due to the Grayscale Ethereum Trust.<br> This weak demand has failed to drive gains for Ethereum, which has further contributed to a decrease in dominance.</p> 
<p>Ethereum is also dealing with a declining burn rate as the coin becomes inflationary.<br> In the last 30 days, more than 43,000 ETH tokens were added to the circulating supply, according to data from Ultrasound Money.<br> This rising supply, coupled with the lack of fresh demand, is likely to increase sell-side pressure on Ethereum, causing it to lose further market share to Bitcoin and other altcoins.</p> 
<p>Ethereum’s falling dominance has also contributed to weakening market sentiment.<br> Most traders are bearish on Ethereum, while smart money or institutions remain bullish.</p>

Ethereum’s Market Dominance Stalls at 13%: Key Factors to Understand

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CoinEagle.com

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