Ethereum, often called the king of altcoins, has recently faced criticism for underperforming compared to other leading cryptocurrencies. However, the situation could change with Bitcoin’s dominance.
Ethereum vs Bitcoin
From its lowest point this month, Ethereum's market cap has increased by approximately $100.61 billion. Bitcoin, on the other hand, gained over $480 billion in market cap during the same period. A major indicator of Ethereum’s underperformance is that it has not reached new All-Time Highs (ATHs), unlike some of its top rivals. For example, Ethereum's Total Value Locked (TVL) peaked at $66.77 billion on November 12th, still lower than its June TVL peak at $72.72 billion. Similarly, Ethereum’s on-chain transactions peaked at 1.29 million transactions on November 12th, yet this number was still below its peak daily transaction count in October.
Price Action and Bitcoin Dominance
Despite these figures, it's important to note that Ethereum has shown bullish performance in November with a rally of 44.61% from its lowest to its highest price in the last two weeks. However, while Bitcoin has been in price discovery, Ethereum is still far from its historic ATH. Bitcoin’s dominance has been increasing for months, suggesting that most of the liquidity coming into the crypto market has been directed towards Bitcoin. This could change if Bitcoin’s dominance starts to decline, which may already be happening according to some indicators.
Future Prospects for Ethereum
The gap between large holder inflows and outflows for Ethereum has been widening, suggesting that Ethereum may be building up more momentum as Bitcoin’s dominance starts to decline. As of November 15th, large holder inflows were notably higher at over 488,000 ETH, while large holder outflows were higher at 312,430 ETH.
Despite recent criticism, the renewed interest in Ethereum might turn the tides. Bitcoin's dominance will play a crucial role in future market changes.
