Ethereum Hits 4-Year Low in Market Dominance
Key Takeaways
- Ethereum (ETH) drops to a market dominance of just 8% – its lowest level since the COVID era.
- Bitcoin (BTC) significantly increases in dominance, surpassing the US$2 trillion market cap for the first time.
- ETH underperforms despite favourable market conditions.
- Institutional investors are increasingly favouring Bitcoin over Ethereum.
Ethereum Continues to Lose Ground
Ethereum has long been considered the second most important cryptocurrency after Bitcoin, especially due to its smart contract functionality, which made it a key component of the crypto ecosystem. However, ETH is currently losing significant market dominance – according to recent data, it has dropped to just 8%. This is the lowest level since the crash triggered by the pandemic in 2020.
Back then, Ethereum was able to recover quickly in the second quarter. Today, the situation is different: technical indicators such as the Relative Strength Index (RSI) remain in oversold territory, indicating continued weak market interest.
Macro Trends Support Bitcoin – Not Ethereum
Although 2024 has been characterized by positive macroeconomic developments – including interest rate cuts by the U.S. Federal Reserve, capital rotation following the Bitcoin halving, and political developments in the U.S. – Ethereum has hardly benefited. Its market dominance has fallen from 12% at the start of 2024 to now just 8%.
In contrast, Bitcoin has made significant gains. BTC dominance has risen from 54% to 61%, while Bitcoin’s total market capitalization has surpassed the US$2 trillion mark for the first time. This trend shows that capital flows are increasingly moving into Bitcoin – at Ethereum’s expense.
Institutional Investors Prefer Bitcoin
Another reason for Ethereum’s weakness lies in the behaviour of institutional investors. While Bitcoin ETFs (Exchange Traded Funds) are seeing strong inflows, Ethereum ETFs continue to experience outflows. This suggests lower institutional confidence in ETH’s medium-term prospects.
Bitcoin is increasingly being viewed as a “safe haven” in the crypto sector – comparable to gold in traditional markets. Ethereum, on the other hand, currently does not appear to fulfil a similar role.
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Technical Weakness Reinforces the Trend
In addition to capital flows, technical data also argue against a near-term recovery for Ethereum. The RSI shows no signs of a rebound, even though the price is at a two-year low. This suggests that no trend reversal is expected in the short term.
Furthermore, there is a lack of momentum from within the Ethereum ecosystem itself. Key developments such as the Ethereum 2.0 upgrade or Layer-2 solutions have so far failed to trigger sustainable market movement.
Our Assessment
Ethereum is currently under pressure – both technically and structurally. The declining market dominance is a clear signal: investors are currently favouring Bitcoin. Despite favourable conditions, ETH has failed to impress. The lack of momentum in institutional inflows and continued technical weakness suggest this trend may persist in the short term.
For you as an investor or crypto enthusiast, this means: keep an eye on market dominance trends. They offer important insights into capital flows and market sentiment. Ethereum remains technologically relevant – but at the moment, Bitcoin is the clear market favourite.
Sources
- TradingView
- CoinMarketCap
| Symbol | ETH |
| Coin type | Alt Coin |
| Transaction Speed | Medium |
| Pros |
|
| Cons |
|
| Further practical applications | |
| Price | $1,623.74 |
| 24h % | -9.42 % |
| 7d % | -10.18 % |
| 30d % | -25.21 % |
| 60d % | -40.93 % |
| 1y % | -51.44 % |
| Market Cap | $196,366,505,268.00 |
| Official Links | Website | Source Code |
| Socials | Reddit | X |
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