With the Ethereum merger successfully completed, bitcoin has seen its biggest proof of competitor network eliminated. While the digital asset pioneer had maintained the largest share of the proof of work networks prior to the Ethereum merger, it now has almost complete control over the entire market capitalization of these coins. So while the crypto market is celebrating Ethereum’s latest upgrade, it’s giving the bitcoin community something to celebrate as well.
Bitcoin now with 94% dominance
Following the exit of Ethereum as a proof of work network, the top 10 proof of work coins now share a combined market capitalization of $403 billion. Bitcoin alone has a whopping $378 billion market cap, making it not only the largest proof of work coin, but the largest cryptocurrency by market capitalization. Given this, bitcoin now has about 94% of the market capitalization of all proof of work coins.
The second largest proof of work coin by market capitalization is now Dogecoin at $7.8 billion. The meme coin, which had risen to prominence back in the bull run of 2021, continues to see favorable growth in the crypto market, even though its price is currently down more than 90% from its all-time high.
Ethereum Classic comes in 3rd place with a market cap of around $5.2 billion. Interestingly, Ethereum Classic had grown to this market cap by capitalizing on the hype of the merger. In addition, Ethereum miners who were kicked off the network began to transfer their mining capacity to what is referred to as “Original Ethereum”, causing an increase in price.
Litecoin and Monero come in at 4th and 5th, with market capitalizations of $4 and $2.6 billion, respectively. The latter is interesting in the fact that it is an untraceable privacy coin, which makes it popular among cryptocurrency investors who want to keep their trade completely secret.
Struggling with market dominance
Although bitcoin is now showing significant strength across proof of work coins, it is still struggling to maintain its dominance over the larger crypto market. Interestingly, just five years ago bitcoin’s crypto market dominance was higher than 95%. However, this has changed as altcoins gain favor among investors.
From 2017 to now, bitcoin’s market dominance has fallen by more than 50%. It currently sits at just over 40% at the time of writing, a level it has struggled to maintain over the past couple of months. The bear market has also played a significant role in the decline in bitcoin’s crypto market dominance.
The market crash has triggered a flight to safety on the part of investors, and they have sought refuge in stable coins such as USDT, USDC and BUSD. As a result, the market dominance of these stablecoins has grown.
Ethereum’s dominance, on the other hand, has grown significantly over the past five years. It is now the second largest cryptocurrency by market capitalization, with a market dominance of 19.58%.
Featured image from NewsBTC, chart from TradingView.com
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