Ethereum Market Dominance has Increased by 7% in Last Five Months

The silver cryptocurrency has been doing well following the revival of the bullish wave in the cryptocurrency world. In the last two weeks, Bitcoin has gone from $30K price level to $45K setting off green candles in the entire altcoin market. The effect of bullish correction has also trickled down to Ethereum, which has been the second-largest cryptocurrency for a long time.

New data from CoinMarketCap shows that Ethereum market dominance has been supplemented by more than 7% in a matter of 5 months. On the other hand, the rest of the altcoins and DeFi sector has stayed at a $120 billion market cap with $80 billion present in contracts and funds that are unable to flow in the open market.

Many Analysts Believe in Ethereum Flippening

The Flippening event is a hypothetical situation where Ethereum can overtake Bitcoin and become the highest-ranking cryptocurrency in terms of market cap. This idea was first introduced during the ICO popularity era. During this time, the market cap of Ethereum surged by many folds and reached very close to Bitcoin market capitalization. Therefore, investors started to speculate the possibility that ETH may take the leading position on the crypto board.

Other events that also added value to Ethereum blockchain are the rise of DeFi and NFT markets. At present more than 200 DeFi projects are hosted on the Ethereum ecosystem. Meanwhile, there is also a highly populated NFT market, and both of these projects bring considerable inflows to the network. Following the release of CyberPunk NFTs, a high amount of transaction volumes were recorded on the NFT marketplace.

The Ethereum network has a major advantage over Bitcoin in that it is possible to upgrade the system. Following the highly anticipated London hard fork upgrade, many ETH stakeholders received the EIP-1559 protocol with great enthusiasm. This new upgrade helped in making the token more deflationary. It also makes way for keeping gas fees for the Ethereum network under control.

Before EIP-1559, the transaction fees went to miners as a revenue method. When the network was highly populated, the gas fee also raises by many folds creating transaction difficulty for investors. However, now the gas fees are burned, and the investors have the option to tip the miners if they want to. Now, even when the Ethereum network is highly populated, the gas fees do not rise as much as 5-10 times.

Leave a Reply

Your email address will not be published.

Related

Asia-Pacific Stocks Gain with Investors Weighing Economic Concerns

On Tuesday, shares in the Asia-Pacific region climbed higher, as investors were weighing the economic concerns. Most indexes record gains The Hang Seng index in Hong Kong had been trading at a loss but rose 0.7% in the last hour of trading. There was also a 0.73% gain in the Hang Seng Tech index. On […]

European Shares Reach Two-Week Highs Thanks to Miners and Prosus

On Monday, European shares rose to a high of two weeks, thanks to mining stocks as China lifted COVID-19 curbs, which gave global commodities a lift and also eased fears of inflation. Meanwhile, Prosus’ plans of trimming its stake in Tencent saw the Dutch company’s stock rally. Index records gains There was a 1.1% gain […]

Stocks Climb Up after Recent Big Gains, as Yields and Oil Rise

On Monday, volatile trading pushed global indexes higher, for the most part, allowing them to extend the sharp gains recorded in the previous week. Meanwhile, there was also a rise in Treasury yields and oil prices. Oil records gains After the rout seen in the previous week, oil finally managed to climb up, as investors […]

When Multiple Tokens Experience Demises, a Stablecoin Demonstrates a Strong Performance

When Multiple Tokens Experience Demises, a Stablecoin Demonstrates a Strong Performance

In recent weeks, the borrowing and lending spaces within the cryptocurrency industry have come under the microscope of regulators. These spaces have undergone scrutiny in recent months and the reason behind the growing pressure is the sell-off observed in the crypto-verse. Now, the investors and users within the cryptocurrency industry want to know exactly how […]

European Shares End Nervous Week on a Strong Note

On Friday, there was a 2.6% rise in European stocks, which helped them enter positive territory. The week saw investors moving into riskier assets, as they began to scale back on bets of central bank tightening. Best Session for Indexes The STOXX 600 index of European countries recorded its best session in over three months. […]