Ethereum Gains Ground, Surpasses Bitcoin in Market Dominance with Notable 22.4% Increase

Recent on-chain analysis highlights Ethereum's ascendance, propelled by network upgrades and investor favor, while Bitcoin faces forward rate challenges.

In recent developments, on-chain analytic firm Santiment reports a remarkable surge in Ethereum's market dominance over Bitcoin, witnessing a substantial increase of over 22.4% in just one week. The escalating popularity of the Ethereum network is underscored by the creation of an average of 89.4k new addresses daily, with an additional 96.3k wallets generated on January 16th.

📈 #Ethereum's price dominance continues to surge against #Bitcoin's, now +22.4% in a week. During this stretch, there have been 89.4K new $ETH addresses created per day, and 96.3K wallets just yesterday. Additionally, the 2nd largest market cap asset's supply on

(Cont) 👇 pic.twitter.com/9nHCl6PJPy

— Santiment (@santimentfeed) January 16, 2024

Data signals a continued surge in the price dominance of Ethereum over Bitcoin, setting the stage for an intriguing market dynamic. Upcoming events, including the Bitcoin halving in mid-April and potential approval of spot Ethereum ETFs in May, coupled with broader macroeconomic influences, add layers of complexity to the evolving crypto landscape. Catalysts for Ethereum's appeal include planned network upgrades, starting with the Dencun hard fork, fueling a bullish perspective among investors. These events might pave the way for Ethereum to further decouple from the broader crypto market.

A comprehensive analysis by QCP Capital reveals a deeper plunge in Bitcoin forwards compared to Ether forwards. Bitcoin's 1-month forward rate has dropped from a peak of 32% annually to a minimum of 9%, a 23% decrease. Similarly, Ether's 1-month forward rate decreased from 28% to 12%, marking a 16% reduction.

Despite yield adjustments, QCP Capital deems ETH forwards attractive, suggesting potential opportunities for investors. Notably, the supply of Ether on crypto exchanges has steadily declined, from 8.18% to 8.10% over the last ten days, nearing an all-time low of 8.05%. This trend suggests a strategic move by Ether holders from exchanges to long-term storage, anticipating a price rise.

While Bitcoin faced a 5% decline post-approvals last week, Ethereum witnessed an 8% rise despite challenges in sustaining the $2,600 level.