Bitcoin’s dominance rises after the Terra LUNA fallout, while Ethereum’s value falls

May 27, 2022

Bitcoin's dominance rises after the Terra LUNA fallout, while Ethereum's value falls.

Bitcoin’s dominance rises after the Terra LUNA fallout, while Ethereum’s value falls

Following the Terra LUNA and UST debacles, digital currency markets have seen a 6.93 percent reduction in value, from $1.356 trillion on May 22 to $1.262 trillion today. In the midst of the chaos, bitcoin’s market share has risen to 43.8 percent, its highest level since October 30, 2021. Furthermore, Ethereum’s market share dropped from 19.56 percent on April 16 to 17.1 percent today.

Bitcoin (BTC) has a 43.8 percent market share among the 13,445 crypto market caps now in existence, the highest it has reached in around 209 days, since October 30, 2021. Following the recent Terra blockchain catastrophe, which caused a considerable amount of value to exit the crypto sector, market domination has risen.

For example, on May 10, 2022, during the death spirals of LUNA and UST and the crypto market carnage, archival data shows BTC dominance was 39.4 percent, while Ethereum (ETH) dominance was 18.4 percent. BTC was trading for $30,118 on that day, while ETH was trading for $2,225 per unit.

The increase on October 30, 2021, was a temporary uptick in BTC dominance to 44 percent, after dominance fell to 40 percent a month earlier, in the first week of September 2021. Prior to the October 30 BTC dominance level, the last time BTC was in the same dominance range among the 13,445 crypto market capitalization was on August 21, 2022.

BTC now outperforms ETH in terms of market capitalization, daily trading volume, and mining incentive earnings during a 24-hour period. Bitcoin transaction costs are also significantly lower: the average BTC transaction fee is 0.000068 BTC ($1.98), whereas the average ETH transaction price is 0.0045 ETH ($8.06). While the median transaction fee for ETH is currently 0.0022 ETH ($3.84), the median transaction fee for BTC is currently 0.000026 BTC ($0.753).

As the value of ETH falls and the value of BTC rises, a number of other alternative assets have lost considerable market cap domination. For example, XRP’s dominance was 2.53 percent on September 4, 2021, but it is now just 1.51 percent. Tether (USDT) is one alternative cryptocurrency that has seen its market domination grow. On September 4, 2021, USDT had a market valuation dominance of over 3%, and now it has a market valuation dominance of over 5.78%.

Read more: This week’s Terra Snapshot is expected. The ‘New’ Luna Will Be Distributed In The Following Ways

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