In the midst of a pronounced downturn in cryptocurrency prices, Ether is relinquishing its standing to Bitcoin, the leading digital asset and a barometer of the crypto market. As of today, Tuesday, Ether’s share in the $1 trillion crypto market has shrunk from 18.4% to 17.8%, while Bitcoin’s dominance has surged from 40% to 50.3%.
Since Monday, Ether’s value has plummeted by approximately 18% since June, which is twice the loss experienced by Bitcoin, currently valued at $27,290. On Monday alone, Ether tumbled 5.4% to $1,639, while Bitcoin declined by 2.3% to its present price. This downturn is primarily attributed to concerns regarding Ethereum’s growth and network activity following the Merge upgrade, along with the halt in Ethereum’s deflation.
According to data from Arkham Intelligence, the Ethereum Foundation recently liquidated a substantial amount of Ether at a price of $1,639 and converted it into the USDC stablecoin. Crypto entrepreneur Justin Sun also transferred some Ether but refuted any selling activity.
Despite the introduction of futures-based Ether exchange-traded funds in the US market, the cryptocurrency markets failed to witness a significant boost. Investors are currently favoring Bitcoin due to expectations of interest rate hikes and geopolitical instability in the Middle East. In June, Ether experienced an approximately 18% decrease in value, whereas Bitcoin’s decline was roughly half that magnitude.
