Bitcoin dominance is rising, but so is Ethereum’s share of market dominance among its altcoin competitors. Cointelegraph explains why.
1. Ethereum’s DeFi ecosystem is driving its market dominance: Ethereum’s decentralized finance (DeFi) ecosystem has been growing rapidly, with more than $40 billion worth of assets locked in DeFi protocols. This has led to an increase in demand for Ethereum, as most DeFi protocols are built on the Ethereum blockchain. As a result, Ethereum’s market dominance among altcoins has been rising steadily.
2. Bitcoin’s dominance is not necessarily a bad thing for Ethereum: While Bitcoin’s dominance in the overall cryptocurrency market has been increasing, it does not necessarily mean that Ethereum’s market share is decreasing. In fact, Ethereum’s market share among altcoins has been rising even as Bitcoin’s dominance has increased. This is because Ethereum is carving out a niche for itself in the DeFi space, which is separate from Bitcoin’s use case as a store of value.
3. Ethereum’s upcoming upgrades could further boost its market dominance: Ethereum is set to undergo a major upgrade later this year, which will introduce several improvements to the network, including faster transaction speeds and lower fees. These upgrades could make Ethereum even more attractive to users and developers, further boosting its market dominance among altcoins.
In summary, while Bitcoin’s dominance in the overall cryptocurrency market is increasing, Ethereum’s market share among altcoins is also on the rise. This is due to the growth of Ethereum’s DeFi ecosystem and its upcoming upgrades, which could further boost its market dominance.