Ethereum vs. Bitcoin: Who Will Win the Dominance Race?

Published by

Elena R

June 19, 2024

The Ethereum (ETH) network is attracting bullish sentiment, driven by clearer regulatory guidelines in the United States. Institutional investors are increasingly accumulating Ethereum, anticipating a significant price rally.

Bitwise Asset Management recently disclosed in a revised S-1 registration that it has seeded its spot Ether ETF with $2.5 million. This move highlights the growing confidence of institutional investors in Ethereum’s potential.

On top of this, on-chain data shows that the supply of Ethereum on centralized exchanges has hit a multi-year low. This scarcity often indicates a potential price increase as fewer tokens are available for sale.

Ethereum’s Web3 Dominance: A Billion-Dollar Ecosystem

The Ethereum network has grown into a major Web3 ecosystem, with over $62 billion in total value locked (TVL) and a stablecoins market cap exceeding $79 billion.

Despite the rise of new layer-one chains like Solana (SOL), Cardano (ADA), and Toncoin (TON), Ethereum has maintained a market dominance of around 18 percent.

According to a well-known crypto analyst called Wolf (IamCryptoWolf) on the X platform, Ethereum’s market dominance could surpass 20 percent by the end of this year. This expected surge aligns with the next major altseason, where Ethereum’s position is set to strengthen despite the emergence of thousands of new digital assets, particularly meme coins.

Regulatory Clarity

While Ethereum has achieved significant regulatory clarity similar to Bitcoin in several jurisdictions, investor interest is also shifting toward small-cap altcoins. These undervalued assets are expected to grow significantly in the coming quarters.

Bitcoin’s Declining Dominance: A Trend to Watch

Bitcoin’s market dominance has been gradually declining, suggesting a similar trend could occur for Ethereum. Bitcoin’s dominance is nearing a major resistance level, which could lead to a reversal and impact Ethereum’s path.

Ethereum’s future looks promising with increased institutional interest and strong on-chain fundamentals.

What are your thoughts on Ethereum’s future dominance? Will altcoins dethrone the king?

Elena R

Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.