Bitcoin’s Market Dominance Approaching Multi-Year High
According to TradingView data, Bitcoin’s market dominance has reached 51.2%, nearing the two-year high of 52% achieved in June. The world’s largest digital asset by market cap has outperformed other major altcoins and Ethereum since the start of the year. At 2:28 pm ET, Bitcoin was priced at $27,354, while Ethereum traded at $1,561, down nearly 6% in the past week.
Tepid Response to Ether Futures ETFs
The lukewarm reception from institutional investors towards newly deployed Ethereum Futures ETFs in the US is cited as a major reason for the underperformance of ether compared to bitcoin. According to Deutsche Digital Assets Head of Research André Dragosch, Ethereum ETPs attracted only $0.9 million in net inflows last week, while Bitcoin ETPs saw net inflows of $85.4 million.
The underperformance of ether is also attributed to a research paper suggesting that the Bitcoin blockchain can handle smart contract computations associated with the Ethereum network. This view is supported by bitcoin pioneer Max Keiser, who believes that ether offers nothing that cannot be accomplished with bitcoin.
Hot Take: Bitcoin’s Dominance and Altcoin Underperformance
Bitcoin’s rising market dominance and the underperformance of altcoins like ether raise questions about the long-term viability and utility of these alternative digital assets. Despite technological advancements and unique features offered by altcoins, institutional investors seem to favor bitcoin as their preferred choice for exposure to the cryptocurrency market. The tepid response to ether futures ETFs and the suggestion that bitcoin can handle smart contract computations further reinforce this sentiment. As bitcoin continues to dominate the market, it remains to be seen how altcoins will differentiate themselves and attract greater investor interest.
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