The cryptocurrency market has been in a consolidation phase over the past few days as most digital assets have failed to break out of their respective ranges. Ethereum has been one of the exceptions as it not only broke out of its range but also surged higher by over 5% in the past 24 hours.
Bitcoin, on the other hand, has been lacklustre and has failed to capitalize on the bullish momentum seen in the altcoin market. As a result, BTC’s dominance over the cryptocurrency market has declined from 63% a few days ago to below 61% at press time.
The second-largest cryptocurrency by market capitalization is currently trading at $2,175, representing a 5.5% gain on the day. Ethereum has been one of the best-performing major cryptocurrencies in the past 24 hours and is currently up by over 13% from its weekly low of $1,915.
The recent rally in ETH price can be attributed to a couple of factors. First, there was an increase in buying pressure after the U.S. Securities and Exchange Commission (SEC) said that it would not classify ETH as a security. This news was a relief for many in the cryptocurrency community as it removes the uncertainty surrounding Ethereum’s regulatory status in the United States.
Second, the launch of Ethereum 2.0 is getting closer and this has led to an increase in speculation about the potential price appreciation that could occur once the upgrade is complete. Ethereum 2.0 is a major upgrade to the Ethereum network that will change the way it works by making it more scalable and energy-efficient.
The third factor that is driving up ETH prices is the increasing demand for decentralized finance (DeFi) applications. DeFi applications are built on Ethereum and allow users to do things like borrow and lend money without the need for a central authority. The total value locked in DeFi protocols has been increasing steadily and is now close to $13 billion.
The recent rally in Ethereum’s price has caused it to outperform Bitcoin over the past week. BTC is up by less than 2% over the same period. The underperformance of Bitcoin is likely due to the fact that it is facing some resistance at the $60,000 level.
The lack of momentum in BTC’s price has led to a decline in its market dominance. BTC’s dominance over the cryptocurrency market has declined from 63% a few days ago to below 61% at press time. This decline in BTC’s dominance is a sign that altcoins are starting to regain some of the market share they have lost over the past few months.
The overall cryptocurrency market is currently worth $2.1 trillion and is up by less than 1% over the past 24 hours.
Ethereum has surged higher by over 5% in the past 24 hours and is currently trading at $2,175. The recent rally in ETH price can be attributed to a couple of factors. First, there was an increase in buying pressure after the U.S. Securities and Exchange Commission (SEC) said that it would not classify ETH as a security. Second, the launch of Ethereum 2.0 is getting closer and this has led to an increase in speculation about the potential price appreciation that could occur once the upgrade is complete. The third factor that is driving up ETH prices is the increasing demand for decentralized finance (DeFi) applications.