The second-largest cryptocurrency by market capitalization Ethereum ($ETH) has considerably underperformed Bitcoin in latest months to the purpose the ETH/BTC ratio, a key indicator of the relative power of the 2 cryptocurrencies, has plummeted to its lowest degree since April 2021, reaching a precarious 0.044.
In line with knowledge shared by main institutional digital asset knowledge supplier CCData, ETH has been constantly underperforming Bitcoin. In the meantime ETH rival Solana has bucked the development, with the SOL/ETH ratio steadily climbing to now be close to a brand new all-time excessive.
Chart of the Week: #Ethereum has considerably underperformed vs #Bitcoin, with the ETH/BTC ratio reaching its lowest degree since April 2021, at 0.044.
In the meantime, the SOL/ETH ratio continues to development upwards, nearing its all-time excessive. pic.twitter.com/fZxeHpoQpL
— CCData (@CCData_io) August 6, 2024
Bitcoin has been outperforming a lot of the cryptocurrency market, to the purpose that its market share of the cryptocurrency house is now at 55%, up from round 38% again in 2022.
Ethereum’s market share over the identical interval dropped from round 18% to roughly 16%, whereas that of main stablecoin USDT went from over 7% to lower than 5% over the identical interval.
Bitcoin’s dominance grew after the launch of spot Bitcoin exchange-traded funds (ETFs) in the USA and amid a big value rise. Notably, the cryptocurrency market just lately noticed a big sell-off that noticed its Crypto Concern & Greed Index plunge into its lowest degree in two years signaling “excessive worry” amongst traders for the primary time since July 2022.
The index, which makes use of a number of sources, together with social media, to provide a relative quantity that displays investor sentiment, has risen from 6 when BTC dropped under $18,000 final yr. Per the index, habits within the cryptocurrency market is “very emotional” and folks “get grasping when the market is rising which leads to FOMO (Concern of lacking out).”
The index additionally provides that folks “usually promote their cash in irrational response of seeing purple numbers.” The index entered “excessive worry” ranges after a large cryptocurrency market sell-off briefly noticed the value of Bitcoin dip under the $50,000 mark earlier than recovering.
Featured picture through Pixabay.