Bitcoin dominance has been on a continuous decline over the past month falling to a new low of 48.42% today from a 72% dominance at the start of the year. A declining Bitcoin dominance is 0ften seen beneficial for the altcoins and as BTC struggle to regain the losses from the past week, most of the altcoins have started rising to new highs.
Bitcoin price is currently consolidating just under $55,000 while Ether has registered three new ATHs over the past three consecutive days. Ether is currently trading at $2,788 registering another new ATH today and looks well set to breach $3,000 in the coming week. ETH faced a lot of flak a month back amid rising gas fees followed by a correction that wiped out most of the gains of the year, however the growing institutional interest and lowering gas fee has brought it back into the game.
ETH/BTC Breaches 0.05, Altcoins Trade Higher
When Ether was struggling last month against Bitcoin many predicted doom for the second-largest cryptocurrency as ETH/BTC pair was on the verge of dipping below key support of 0.03, however, ETH bounced back significantly soon after seeing a trend reversal and today breached the key resistance of 0.05 to mark an ATH against the top cryptocurrency.
The rising price of Ether is being attributed to the declining correlation with Bitcoin, increasing institutional interest with the likes of JP Morgan predicting a better market depth for altcoin than BTC, and diminishing market supply of ETH as most of them are being staked in the ETH 2.0 deposit contract.
The declining Bitcoin dominance has not just proven beneficial for Ether as most of the altcoins have recovered a majority of their losses from last week’s correction and aiming for new ATH. Matic has risen to a new ATH above $0.80 with over 200% gain in the past week. Dogecoin also rose over 30% yesterday after Elon Musk’s Dogefather tweet. Binance Coin has also registered a 10% gain today rising over $600 for the first time in two weeks.