Ethereum Losing Ground to Bitcoin Amid Crypto Market Downturn
Ether’s Dominance in Crypto Market Declining
In the midst of a downturn in cryptocurrency prices, Ethereum’s digital asset Ether is losing ground to Bitcoin, the most widely-held cryptocurrency and market bellwether. Ether’s share in the $1 trillion crypto market has dwindled from 18.4% to 17.8%, while Bitcoin’s dominance has surged from 40% to 50.3%.
Ether’s Value Drops Amid Market Turmoil
Since Monday, Ether’s value has dropped approximately 18% since June, double the loss of Bitcoin. Currently valued at $27,290, Bitcoin experienced a 2.3% decline, while Ether plunged 5.4% to $1,639. This decline is attributed to concerns over Ethereum’s growth and network activity after the Merge upgrade, as well as the cessation of Ethereum’s deflation.
Sale of Ether by Ethereum Foundation
According to Arkham Intelligence data, the Ethereum Foundation recently sold a significant amount of Ether at a price of $1,639, converting it into USDC stablecoin. Additionally, crypto entrepreneur Justin Sun also transferred some Ether, although he denied selling any.
Bitcoin Preferred Amidst Global Unrest
Despite the launch of futures-based Ether exchange-traded funds on US markets, the crypto markets saw no significant boost. Investors are favoring Bitcoin due to potential interest-rate hikes and unrest in the Middle East. In June, Ether’s value shrunk by about 18%, while Bitcoin’s drop was roughly half that magnitude.
This article provides insights into the recent decline of Ether in comparison to Bitcoin amidst a downturn in the crypto market. As Ether’s dominance wanes, Bitcoin continues to gain traction. The decline in Ether’s value can be attributed to concerns over Ethereum’s growth and network activity, as well as the cessation of Ethereum’s deflation. The sale of Ether by the Ethereum Foundation and the preference for Bitcoin among investors due to potential interest-rate hikes and global unrest have also contributed to this shift. It is important for investors to closely monitor these market dynamics as they navigate the cryptocurrency landscape.
