Key Points:
- Bitcoin dominance rate tops 52% as BTC holds above $28K.
- Ether drops below $1,560, hitting 15-month low versus Bitcoin.
- DeFi tokens plunge led by Uniswap’s UNI after platform imposed fees.
Bitcoin has continued to outpace the broader cryptocurrency market, with its dominance rising to the highest level since April 2021. Meanwhile, Ethereum’s Ether token and decentralized finance (DeFi) assets have struggled to gain traction amidst the ongoing crypto bear market.
According to data from TradingView, Bitcoin’s share of the total crypto market capitalization, also known as its dominance rate, has climbed above 52% – its highest point in over 18 months. This comes as the price of Bitcoin hovers around $28,500, slightly up over the past 24 hours.
In contrast, Ether, the second-largest cryptocurrency by market cap, has shown weakness. ETH dropped 1.8% to around $1,560 over the same period, hitting a fresh 15-month low relative to Bitcoin. Overall, the CoinDesk Market Index, which tracks major cryptocurrencies, was down 0.6% on the day.
Among crypto sectors, the CoinDesk DeFi Index fared the worst, plunging 3.7%. This was led by a nearly 7% tumble in Uniswap’s UNI token after the decentralized exchange announced it would impose trading fees on its platform.
The native token of blockchain network Sui also fell 7.6% following concerning reports out of South Korea related to potential token manipulation. The Sui Foundation firmly denied these claims as false.
According to advisory firm ByteTree, Bitcoin’s rising dominance indicates traders are focused on its unique narratives like the long-awaited approval of a Bitcoin spot ETF and its upcoming halving in 2024. Both events are considered potentially bullish catalysts for Bitcoin’s price.
The data highlights an ongoing divergence in the crypto markets, with Bitcoin consolidating its status as the reserve asset of the space while more speculative altcoins flounder. For now, the king cryptocurrency remains relatively resilient compared to high-flying DeFi tokens and Ethereum, which have borne the brunt of this year’s crypto downturn.
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Disclaimer: Please note that the viewpoints and perspectives expressed by the author, as well as any individuals referenced in this article, are intended solely for informational purposes. They should not be construed as financial or investment advice. It’s important to acknowledge that investing in or trading cryptoassets carries inherent financial risks.
