🔥🔥🔥 #cryptotrends : #Bitcoin’s Rise, #Ethereum’s Challenge, and Global Market Influences
Bitcoin's Position in Global Markets
- According to a CoinGecko report, Bitcoin is currently holding a strong position, capturing over 53% of the total crypto market share. At present, Bitcoin dominance stands above 58%, marking its highest level since its April 2021 bull run.
However, the report also highlighted some less optimistic trends. The total crypto market cap saw a slight decline, and Bitcoin underperformed compared to traditional assets such as gold and various treasury bonds. In particular, British, Japanese, and US treasury bonds outpaced Bitcoin’s returns after early August.
- Global government policies, especially from these countries, played a significant role this quarter. US interest rate cuts provided a boost to Bitcoin, as did potential tax reductions in Japan. Meanwhile, stimulus measures in China helped lift the entire crypto market. While CoinGecko didn’t assess Chinese treasury bonds, ETF performance in the region was notably high, according to analyst Eric Balchunas.
- In summary, while Bitcoin has claimed a significant lead within the crypto market, it's not entirely a victory. The broader market continues to struggle, and Bitcoin's gains are largely tied to global economic factors.
Ethereum Facing Competition?
- Ethereum ($ETH ) has lost some market share to Bitcoin, but that’s not the only shift noted by CoinGecko. Ethereum Layer-2 (#L2 ) transactions increased by 17.2% this quarter, with nearly half of those transactions originating from Base, an Ethereum L2 solution. Base alone accounted for 42% of all Ethereum L2 transactions, signaling its growing influence.
- Base and Solana have eroded Ethereum's dominance in DEX trading, while Bitcoin and Ethereum both struggled in Q3 2024. Despite only slight market shrinkage, Bitcoin's performance is tied to global economic factors, and Ethereum faces growing competition.
