Bitcoin ’s dominance (BTC.D: the market cap of bitcoin relative to all crypto assets) , according to CoinMarketCap , fell below 40% for the second time since 2018 and is at an eight-month low, according to CoinMarketCap. Ethereum miner balances (i.e. the amount of ETH held by miners) hit an all-time high.
The move is in stark contrast to the crypto bear market that began in 2018, when the price of alternative crypto assets plummeted, when bitcoin dominance rose to more than 70% of the September 2019 level in a market-wide decline .
The push for the Ethereum merger
Ethereum has been the main force driving BTC.D near all-time lows. ETH dominance (ETH.D) stands at 20% as of Aug. 30, after climbing from a low of less than 8% in the fourth quarter of 2019.
ETH.D has not collapsed with the bear market – instead, it has remained roughly 20% since November 2021, while BTC.D has been roughly stable since May 2021.
The ETH/BTC ratio, the price of ETH to BTC, is largely similar to the ETH.D chart. The two cryptocurrencies account for 60% of the market – ETH’s relationship with BTC largely determines its dominance in the overall crypto market.
According to data from The Defiant Terminal, ETH fell 59% last year. Still, it maintained its dominance of around 20% as all major coins were “blooded” during this time.
Financing rates at 14-month lows
ETH funding rates also hit a 14-month low, according to an Aug. 28 report by cryptocurrency trader Maartunn.
When the funding rate of asset perpetual futures is negative, it indicates a surplus of sellers and traders profit by going long. As Maartunn pointed out, the last time ETH’s funding rate was this low was in July 2021, and the asset bounced back in a brief squeeze shortly thereafter.
Miner balances, the amount of ETH held by miners, also more than doubled to 261,849 from 114,255 last year, according to OKLink. This could indicate that miners were bullish ahead of the merger, as they chose to hold ETH block rewards rather than sell tokens.
Just a week away from the first phase of the much-anticipated ethereum upgrade, expectations appear to be driving ETH’s price action as traders also place bullish bets through derivatives.
On-chain data shows that BTC funding rates remain negative, indicating that bearish investors are paying bullish traders the right to short BTC. Funding rates have been negative on 11 of the past 12 days, indicating that bearish sentiment is currently predominant.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/bitcoin-dominance-falls-below-40-for-first-time-since-january-pre-merger-ethereum-miner-balance-hits-record-high/
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