The great protagonist of the crypto market in recent days has not been Bitcoin. On the contrary, while the main cryptocurrency in the world is stagnant around $ 30,000, and with the permanent threat of breaking that key support and falling further. The cryptocurrency created by Vitalik Buterin has set a new all-time high price. Therefore, we wonder if the price of Ethereum marks the beginning of the altcoin boom.
The rise in the price of Ethereum
The last year has been spectacular for the world of cryptocurrencies. And it is that, not only the Bitcoin has been benefited by the entry of large institutional investors to the crypto market. If not, in general, all altcoins have seen an increase in their demand, due to this constant flow of new investors.
In this sense, there is probably no altcoin that has benefited more from this trend than Ethereum. Thus, the ETH boom did not begin with the new great bullish rally of Bitcoin, but since mid-2020, the second cryptocurrency by market capitalization has experienced a constant increase in its price.
It was sparked at first by last year’s decentralized finance fever. To later find its main engine in the launch of the new version of the cryptoactive, ETH 2.0. And, of course, in the spillover effect generated by the entry of millions of dollars to the Bitcoin market. With many investors preferring to invest in Ethereum over Bitcoin, even through the ETH fund created by Grayscale.
Altcoin season begins
This path marked by Ethereum, has been traversed by practically all the important altcoins. Well, although they have not achieved such a radical increase in price as Ethereum. Yes they have made impressive advances in their price. With coins like Binance Coin leading this process.
Therefore, for many analysts, we would be entering an altcoin season. During which, most of the profits from the crypto market will not come from Bitcoin, but from alternative cryptocurrencies to consider such as Ethereum, BNB, Cardano or XRP. As the price of Bitcoin settles and that of other virtual currencies skyrockets.
This theory would be confirmed by observing the dominance graph of the crypto market. This graph compares the percentage of the main cryptocurrencies in the total market capitalization of crypto assets, with Bitcoin being historically the dominant force in it, with percentages above 60%.
However, throughout the month of January we have witnessed how, although the price of Bitcoin continued to rise, its dominance over the market fell. Going from around 72% to the 63.37% that it has at the moment. A major decline that enhances the role altcoins are gaining in the crypto world.