Ethereum has made a significant comeback in the crypto market, surpassing the 10% dominance mark, a milestone not seen in an upward trend since March 2020.
Factors Behind Ethereum’s Dominance Rise
Several factors may contribute to Ethereum's dominance increase. A key driver is the growing confidence in its Layer 2 ecosystem, which has significantly reduced gas fees and improved network efficiency. Additionally, anticipation around Ethereum's continued evolution post-merge and towards full scalability through sharding and proto-danksharding plays a major role.
Ethereum's Potential in the Next Bull Cycle
Historically, Bitcoin dominance leads in the early stages of a bull market; however, Ethereum's rise may indicate a shift towards an 'altcoin season.' If Ethereum continues to gain dominance, it could trigger a wider rally across the altcoin market, attracting both retail and institutional investors.
Conclusion
The increase in Ethereum's dominance and its growing significance in decentralized finance (DeFi) and NFTs highlights its potential return as a leading force in the blockchain ecosystem.
With Ethereum surpassing the 10% dominance mark, it has the potential not only to solidify its position but also to act as a catalyst for the next wave of growth in the cryptocurrency market.
