Bitcoin and Ethereum prices have both consolidated below major resistance levels after big increases on Wednesday. BTC is still hovering around $47,300, while ETH is hovering around $3,400.
However, other cryptocurrencies have outperformed BTC in recent crypto rallies, reaching new highs in market capitalization. During the start of the 2021 rise, a similar scenario was observed, which finally challenged BTC’s dominance.
In terms of price performance, tokens such as Cardano (ADA), Ripple (XRP), Terra (LUNA), and Solana (SOL) have blown past BTC in the last two weeks. Further increases in their market capital could put BTC’s dominance in trouble.
ETH Volumes Surge, What Next?
Recent data suggested that Ethereum (ETH) volumes were converging with those of its larger peer Bitcoin (BTC). This year, interest in the world’s second-largest cryptocurrency has soared ahead of a widely anticipated switch to a proof-of-stake (PoS) mechanism.
In the last two weeks, the price of Ethereum has risen by more than 20%, and it was trading at roughly $3,400, close to breaking even for the year. Daily volumes have climbed considerably in recent weeks, averaging around $20 billion.
Since 2021, according to data from blockchain research firm Kaiko, the convergence between ETH and BTC volumes has been increasing. The seven-day moving average volumes for the two tokens were nearly identical at times over the past year.
The statistics could indicate a bigger shift in market structure, with BTC volumes tapering even more and market money flowing into a variety of different initiatives. “Altcoin Season” is the name given to the phenomenon.
The switch to a PoS approach at ETH has piqued institutional interest in a number of other blockchain initiatives. The growing interest in Defi, as well as an examination of BTC’s high energy requirements, may cause capital to flee the cryptocurrency.