Bitcoin vs Ethereum
Even though these two blockchains serve different purposes, Bitcoin and Ethereum are still the largest cryptocurrencies in the world, accounting for more than 50% of the global market capitalization. BTC is the most important crypto, trailing ETH by a wide margin, yet the question continues to be if the still-undisputed leading cryptocurrency is going to eventually be dethroned by Ethereum.
Crypto bear market flushes away gains
Bitcoin topped in April, and Ether in May as well, both now more than 50% below the all-time highs. If BTC was perceived as a safe haven during past bear markets, that does not seem to be the case right now, considering the losses are equal among the top two cryptocurrencies.
Overextended valuations have created a very speculative environment and a sharp reversion to the mean has occurred. At the time of writing, the cryptocurrency market is consolidating close to the lows and looking ahead, seasonality does not favor a strong bounce. Cryptocurrency enthusiasts might have to wait until Autumn when statistics are more poised for upside gains.
Bitcoin dominance still the largest
Accounting for 45.7% of the total market, Bitcoin leads by a large, followed by Ether, which holds a 17.5% market dominance. As with all prior bull markets, the Bitcoin dominance had narrowed when investors were more eager to buy altcoins on the back of strong risk sentiment.
The BTC market lead might still be obvious, yet the dominance has been on a downward path since the end of 2020 and it does not show any strong signs of recovery even now when there is still a bear market in place. On prior similar occasions, investors were selling altcoins and buying BTC to protect against a massive drop in valuations and since it isn't the case now, Ether might stand a chance to continue building momentum over the next months and years.
Does ETH have better prospects?
Transitioning towards Proof-of-Stake in line with other major blockchain improvements puts ETH in a favorable position in the long run. The competition between Ether and Bitcoin will continue and thus retail traders and investors can profit from major price swings using cryptocurrency exchange platforms such as Coinjump.
Increased crypto volatility creates a proper environment, as long as valuations continue to rise on 4-year cycles, as they did over the past decade.
How can people take advantage of the changing market dynamics?
Coinjump is currently providing coverage for Bitcoin and Ethereum, offering attractive rates and a customer-friendly platform users can access from anywhere in the world on any type of device. Registered in Estonia, the brand operates in line with some of the highest standards, ensuring a high level of security, transparency, and some of the best crypto rates in the market.
Opening an account with Coinjump is a simple and
straightforward process. Once that's completed, customers can proceed with a
deposit and start gaining exposure on cryptocurrencies, or reduce their
exposure by selling. Bitcoin and Ethereum will remain volatile and that is
creating incentives for speculation on their valuations.
