dominance

Bitcoin dominance threatens ‘likely top’ despite BTC price eyeing $45K

Bitcoin analysis suggests that all may not be well for BTC price strength as altcoins make their move.

Bitcoin (BTC) risks “rolling over” to cancel its latest uptrend, new analysis warns as altcoins surge.

In a post on X (formerly Twitter) on Dec. 9, popular analyst and social media commentator Matthew Hyland flipped cautious on BTC price action.

Bitcoin bulls kept momentum hot into the end of the week’s Wall Street trading as BTC/USD sealed new 19-month highs of $44,729 on Bitstamp on Dec. 8.

Bitcoin’s dominance knocked by ETH’s post-Shapella rally

Bitcoin’s percentage of the total cryptocurrency market retreated by nearly 1% on April 14, while Ether gained just over 1.1%.

Ether (ETH) prices have topped the psychological $2,000 level following the Shapella upgrade this week and the result is a decline in Bitcoin (BTC) market dominance.

According to data from the analysis site btctools.io, Ether’s market share had climbed to 19.8%, an over 1.1% boost, in the last 24 hours at the time of writing on April 14, while Bitcoin’s dominance had slid by just under 1%. Since the beginning of the year, ETH dominance has increased by 7.6%.

Bitcoin’s market dominance has fallen to 47.7% as Ethereum’s market share increased. The post-Shapella ETH rally has knocked BTC off an almost two-year high in terms of market share.

BTC’s market share tapped 48.8% on April 12 following its rally to $30,000, the highest it’s been since July 2021, when it came just shy of 50%. Additionally, BTC has not been over 50% dominant since April 2021.

Bitcoin’s dominance remains up 13.6% since the beginning of the year, according to TradingView data.

*Chart plotting Bitcoin’s dominance since late 2022. Source:* *TradingView*

The market share rise in both BTC and ETH has been at the expense of altcoins, most of which have been lackluster during the recent rally of the two top coins.

Bitcoin and Ether combined represent around 68% of the total crypto market. Roughly 10% of the market are stablecoins, meaning the other 10,800 or so tokens, as listed on the price analytics platform CoinGecko, have a combined share of just 22%.

*The market cap share of the top coins over one month shows a slight increase for ETH and a decrease for BTC. Source:* *CoinMarketCap*

Market dominance is calculated by looking at an asset’s market capitalization compared with the total crypto market cap, which is currently at an eleven-month high of $1.33 trillion.

Ether (ETH) has surged 10.25% over the past 24 hours. As a result, the asset tapped an eleven-month high of $2,122 during the April 14 morning Asian trading session, according to Cointelegraph data.

Ether momentum has been driven by a successful Shapella upgrade on April 12, which released staked ETH on the Beacon Chain.

BTC has managed a 2% gain on the day, reaching an intraday high of $30,862 during the April 14 morning Asian trading session.

Magazine: ‘Account abstraction’ supercharges Ethereum wallets: Dummies guide

‘Binance is the crypto market:’ Arcane crowns the exchange 2022’s winner

Following the fallout of FTX, implementing zero fee BTC trading and some notable global acquisitions Binance’s market dominance has surged throughout 2022.

During a year plagued by crises such as the collapse of FTX and Celsius, data shows that crypto exchange Binance has emerged as the clear “winner” of 2022 according to Arcane Research.

A Jan. 3 report from Arcane highlighted that Binance saw its market dominance soar throughout 2022. As of Dec. 28 last year, it had captured 92% of the Bitcoin (BTC) spot market and 61% of the BTC derivatives market by volume:

“There are no other evident ‘winners’ of 2022 other than Binance when it comes to the crypto market structure and market dominance. No matter how you look at it in terms of trading activity, Binance is the crypto market.”

Binance’s BTC spot market dominance was 45% at the start of 2022 meaning that it more than doubled, while its share of the BTC derivatives market increased by almost one third.

*Real BTC daily volume vs Binance spot volume vs Binance market share. Source: Arcane Research.*

The “spot trading volume” is an indicator that measures the total amount of Bitcoin being transacted on spot exchanges on any given day.

The report suggests the increase in Binance’s BTC spot market dominance predated the fallout of the second largest exchange by volume FTX, and began to surge after it removed fees for certain trading pairs on Jul. 7, 2022.

The exchange also made some notable acquisitions to boost its global coverage in 2022 such as the Japanese trading platform Sakura Exchange BitCoin and Indonesian digital currency brokerage firm Tokocrypto.

Binance has been one of the few exchanges to increase the number of staff it employs over the year while its peers such as Kraken and Coinbase have been forced to lay off staff during the current crypto winter.

Looking ahead to 2023, Arcane predicted in a Dec. 30 report that Binance would implement trading fees again in 2023 which would lead to a “normalization of the market dominance.”

As noted in a Jan. 3 report from digital asset data firm CryptoCompare, removing fees allows exchanges to attract customers but they “must be wary to remain profitable” and “cannot employ this strategy for long periods of time without hurting their bottom line.”

Binance could also be subject to increased regulatory scrutiny in 2023 — particularly relating to its native token BNB (BNB) — as following the fallout of the FTX empire, there has been an increased focus on crypto regulations globally.

Analysis from Bitcoin advocate Nic Carter suggested while Binance’s CEO, Changpeng Zhao, has been vocal about his support for exchanges providing proof-of-reserves (PoR), the PoR provided by Binance was incomplete as “it only covers Bitcoin, which only represents 16.5% of their client assets.”