Bitcoin (BTC) Dominance Slips Below 50% as Market Liquidity Hits ATH

Godfrey Benjamin
March 12, 2024
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Highlights

  • Bitcoin dominance is below 5% despite recent price boom
  • Stablecoin liquidity is at its highest level per CryptoQuant data
  • More market boom are ahead with important fundamentals ahead for Bitcoin and Ethereum

Bitcoin’s (BTC) price is seeing a slip in its overall dominance amid an encompassing rally in the broader digital currency ecosystem with altcoins seeing encompassing valuation boosts.

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Bitcoin Dominance and Market Liquidity

According to data from crypto analytics platform IntoTheBlock (ITB), Bitcoin dominance is pegged at 48% amid a recent rally to an All-Time High (ATH) of $72,850.71 that pushed its market capitalization above $1,425,765,296,329.

The IntoTheBlock data pegs Ethereum dominance at 17% amid the altcoin’s momentum push to retest its ATH of $4,891.70. Stablecoins saw a 5% dominance boost while other digital currencies profiled on the platform held the remaining 30% dominance sway.

Despite the massive Bitcoin dominance, the cryptocurrency has lost its gait a bit in the market with a slip from 50% benchmark. The market’s growth underscores how liquidity is spreading to other altcoins in the industry. According to data insights shared by analytics platform CryptoQuant, the crypto market liquidity marked by stablecoin valuation surged to its ATH.

Per the data presented, the circulating supply of all Ethereum stablecoins comes in at 76,150,161,366.21, up by 0.44% over the past week. As explained by CryptoQuant researchers, the increase in the stablecoin supply indicates a bump in not just liquidity to purchase Bitcoin but for other altcoins as well. 

Per the current outlook in the market, the CryptoQuant analysis pegs the overall outlook in the market as a positive one that might boost valuations across the board.

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Multiple Growth Catalysts – Bitcoin and Ethereum

The Bitcoin valuation adjustment in relation to Ethereum over the coming weeks judging by how investors adapt the upgrades and events within both asset’s ecosystems.

The Bitcoin market is expecting the sustained capital inflow into the spot BTC ETF products, the investment asset that has been stirring a massive growth through supply crunch. The Bitcoin halving event is also slated for the next 36 days, an event that will reduce Bitcoin’s supply by 50%, further complementing the spot Bitcoin ETF liquidity crunch and likely push price higher.

For Ethereum, there is less than 48 hours to the launch of the Dencun Upgrade on the mainnet. This upgrade will result in a massive fee slash on top Ethereum Layer-2 platforms like Arbitrum and Base. With the slash, the adoption of protocols resident on Ethereum are bound to grow, placing enormous demand on the coin overall.

While the likely approval of spot Ethereum ETF remains a divisive subject at this time, the most important ETH fundamental hinges on the Dencun Upgrade. The bull market is considered to just be starting and will likely stir BTC and ETH price from their current levels at $72,572.56 and $4,060.83 to new highs.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on X, Linkedin
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.