Bitcoin Backs Down: Ethereum Steals The Spotlight With Surge In Market Dominance

Christian Encila

1 year ago

3 mins read

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Amidst the lull in the realm of Bitcoin, Ethereum emerges as a trailblazer, confidently charting its course. While the crypto king takes a breather following its ETF approval, Ethereum, undeterred, is experiencing a surge in both price and dominance, propelled by an influx of new users and the prevailing trend of self-custody.

Recent data from Santiment vividly illustrates Ethereum’s ascendancy. The platform’s price dominance, reflecting its market share in comparison to all other cryptocurrencies, has witnessed a remarkable surge of 22.4% within a mere week.

Ethereum’s Remarkable Surge: Growing Community, Strong On-Chain

This surge is not merely a passive spectacle; Ethereum is actively attracting an astonishing 89,400 new addresses on a daily basis, with an unprecedented 96,300 joining the Ethereum community in a single day.

Source: Santiment

This momentum is not solely about acquiring new participants; it’s about retention. Ethereum’s exchange supply, representing the quantity readily available for sale, is approaching its historical low of 8.05%. This shift signals a notable move towards self-custody and staking, mitigating the immediate risk of a substantial selloff and fortifying Ethereum’s price floor.

The on-chain strength witnessed translates into tangible market action. Following a brief dip that tested the $2,500 support, Ethereum not only stabilized but turned this once-resilient level into a launchpad.

Ethereum currently trading at $2,556 on the daily chart: TradingView.com

Analysts are now setting their sights on the $2,700 barrier as the gateway to unlocking a potential price surge, with FOMO (fear of missing out) traders anticipated to join the rally. Beyond this juncture, the horizon appears boundless, with $3,400 emerging as an enticing target.

Caution Amid Excitement: Ethereum’s Unpredictable Trajectory

Yet, amid the excitement, an air of caution permeates the volatile crypto landscape. A breach below the “hammer” formation that materialized on Monday holds the potential to send Ethereum plummeting towards the 20-Day EMA (exponential moving average) at approximately $2,300.

Traders are poised on tenterhooks, meticulously monitoring these crucial levels to decipher the forthcoming trajectory of Ethereum’s journey.

One undeniable truth emerges: Ethereum is casting off the shadow of Bitcoin and carving out its unique path. With an increasing dominance, a fervent user base, and a focus on self-custody, Ethereum is laying the groundwork for future expansion.

Whether it attains the envisioned $3,400 pinnacle or steers towards an alternate destiny, one certainty prevails—Ethereum is an influential force, and its narrative is only in its nascent stages.

History repeating itself.#Bitcoin dominance peaking before the halving and potentially marking a cycle top.

Altcoins are likely to outperform coming period. pic.twitter.com/ox36x2M5NG

— Michaël van de Poppe (@CryptoMichNL) January 15, 2024

Meanwhile, in order to bolster Ethereum’s increasing dominance over Bitcoin, Michaël van de Poppe, the founder and CEO of trading company MNTrading, observed that Bitcoin was falling behind Ethereum in terms of the total market capitalization of cryptocurrencies.

In a post on X dated January 12, he included the following graphic with the caption, “#Bitcoin dominance peaking before the halving and maybe signifying a cycle top.” It’s conceivable that altcoins will perform better in the near future.

Featured image from Shutterstock

Christian Encila

They say journalists never truly clock out. But for Christian, that's not just a metaphor, it's a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

Christian's journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling - right up his alley!

So, he landed a killer gig at NewsBTC, where he's one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

Think Christian's all work and no play? Not a chance! When he's not at his computer, you'll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

Speaking of chill, Christian's got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

Here's the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day - and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors - and bosses - he deeply respects.

So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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