- Ether now represents 18.7% of all cryptocurrencies, its highest point since May
- Bitcoin dominance dipped slightly after major altcoins outperformed top digital asset
Cryptocurrency prices have been – finally – glowing bright green over the past week, giving the industry a long-awaited reprieve from the brutality of the ongoing bear market.
Digital assets have added nearly 16% to their collective capitalization since last Friday, representing nearly $143 billion in face value.
In total, the cryptocurrency is now worth $1.045 trillion, according to TradingView’s Total Crypto Index, down 52% year-to-date.
But gains were seen virtually across the board, with nearly all of the top 100 cryptocurrencies by market value making ground.
LDO, the governance token for the Lido liquid staking community, led the pack with an 80% price explosion. This week, the project pledged to expand across the entire Ethereum Layer 2 landscape.
Long-standing blockchain forks came second and third. Ethereum Classic (ETC) jumped 75% amid speculation that ether miners could move to the network following its impending move to proof-of-stake, while Bitcoin Gold (BTG) added 50% to its price without any clear narrative.
LDO, ETC and BTG were trading 46%, 24% and 42% respectively below their prices year-to-date at 12pm ET.
Stablecoin dominance declines alongside Bitcoin
Yuga Labs’ ApeCoin (APE), which is set to power its upcoming Otherside metaverse, is up 43% on a well-received demo; DeFi Ecosystem Gnosis Native Token Gnosis Surged 38%; ether (ETH) rose 35%.
Recent data from Glassnode shows ether deposits on crypto exchanges hit a four-year low as holders pile into the network’s merge contract in anticipation of returns. Bitcoin (BTC), on the other hand, rose 15% from around $20,600 to $23,700.
APE, GNO, and ETH are now down 22%, 73%, and 56% year-to-date, respectively. BTC has fallen 49% so far in 2022, which has been defined by some of the most turbulent macro conditions in decades.
“Yes, the European Bank raised rates for the first time in a long time. Yes, the Federal Reserve is also raising rates. And, yes, liquidity is tightening. This has been penalizing for Bitcoin and risky assets more generally,” said Ganesh Swami, CEO of blockchain data firm Covalent.
Swami added, “It will remain difficult until the Fed can bring inflation down, or if the Fed just gives up fighting inflation. Either way, it will probably be a difficult few months for the markets, especially in the event of an energy crisis in Europe.
He expects bitcoin to rise once quantitative easing resumes.
Yet only three of the top 100 cryptocurrencies (without stablecoins and wrapped tokens) have lost value in the past week.
Arweave, the token that powers the decentralized storage protocol of the same name, fell 1%; Decentralized Exchange (DEX) Token Serum Powered by Solana Falls 4%; and the VR digital asset ceek fell nearly 21%.
In fact, Ether’s recent rally took its dominance (which measures the market share of digital assets to ETH) to its highest level since May, after jumping 16.5 percentage points to 18.7%. Bitcoin dominance decreased slightly from 43.5% to 43.1%.
Stablecoin dominance also dropped as traders left their safe havens in search of profits. The four major stablecoins – Tether, USD Coin, Binance USD and MakerDAO’s DAI – together accounted for 14.2% of the crypto as of Friday; now down to 12.35%.
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