Cryptocurrency research firm CryptoQuant reported in a recent analysis that Bitcoin’s market dominance has increased significantly, reaching a 40-month high of 78.5% compared to Ethereum.
The chart provided by CryptoQuant shows the widening gap between Bitcoin’s dominance and Ethereum’s market cap. This trend has been gaining momentum since late 2022, amid increasing speculation surrounding Bitcoin ETFs. The subsequent approval and significant inflows into Bitcoin ETFs have further strengthened Bitcoin’s market dominance.
Despite the excitement surrounding a potential Ethereum ETF, it has yet to have a similar impact on Ethereum’s market appeal. The modest demand for Ethereum ETFs highlights the disparity in investor interest compared to Bitcoin.
Historical events such as the ICO bubble and the cryptocurrency market peak in 2021 have previously influenced Bitcoin’s dominance. According to analysts, a similar significant event may be necessary to change this trend in favor of Ethereum.
At the time of writing this article, Bitcoin's market value is around $1.18 trillion, while Ethereum's market value is around $315 million.
*This is not investment advice.
