Bitcoin Dominance Hits 40-Month High as ETH Fails to Match Up

On-chain data shows that the dominance of Bitcoin (BTC) is on the rise and has now inched toward a 40-month high.

Bitcoin (BTC) is once again asserting its dominance in the cryptocurrency market, with on-chain data revealing that it has now inched toward a 40-month high. This development can largely be attributed to the increasing attention that institutional investors are paying to the flagship cryptocurrency.

According to the latest 13-F filings, several Wall Street firms have been observed pouring their funds into BTC ETF products. This strong institutional interest has played a pivotal role in boosting BTC's dominance.

“BTC.D has moved from around 38% in November 2022 to 56% today. Here's a chart showing BTC dominance expanding as ETH market cap decreased in 2023,” Glassnode stated.

As noted by the analytics platform, BTC dominance reached a 40-month peak, hitting 78.5% at one point. This observation suggests that Ethereum's appeal is yet to match up to the top coin's despite ETH's circulating supply skyrocketing. The numbers clearly indicate stronger demand for BTC among investors.

Meanwhile, Ethereum's dominance declined by 1.5%, and so did that of some other altcoins. Stablecoin dominance went from 17.3% to 7.4%, while that of altcoins dropped to 21.3% from 27.2%.

The premier coin began this consistent journey of dominance towards the end of 2022, right after the broader crypto market faced a harsh market implosion. The anticipation and speculations around a potential spot ETF contributed to the rising dominance. The United States Securities and Exchange Commission (SEC) finally approved the offering at the beginning of 2024. Almost immediately, it began to record massive inflows with BlackRock's IBIT leading the pack and this further increased the Bitcoin dominance.

The above is the detailed content of Bitcoin Dominance Hits 40-Month High as ETH Fails to Match Up. For more information, please follow other related articles on the PHP Chinese website!