While Bitcoin’s supremacy begins to reassert itself, Ethereum also strides forward, staking out an increasing proportion of the altcoin arena. We examine the key drivers behind this trend.
Ethereum, the trailblazing network for smart contracts and decentralized applications (DApps), has demonstrated an undeniable upwards trajectory in its market footprint. Ethereum’s currency and its market capitalization confirm this undisputed ascent.
Ethereum has witnessed a consistent expansion in its market influence in recent years, having risen from an average of 18% in July 2021 to nearly 20% now. When Bitcoin is removed from consideration, Ethereum’s market dominance becomes even more compelling, with a formidable 40.6% share, far surpassing its closest rival, BNB, which holds a 7.2% share.
Ethereum’s dominant position is even more pronounced when gauging the total value secured (TVL) within the network’s smart contracts. With an astounding TVL of $24.6 billion, Ethereum towers over Tron’s $5.4 billion and BNB Chain’s $3.3 billion.
Decentralization: Ethereum’s Signature Strength
Ethereum’s vibrant ecosystem boasts the largest contingent of active developers, with numbers exceeding 1,870, which outnumbers the combined total of the next three contenders, namely Polkadot, Cosmos, and Solana.
The Ethereum network is home to over 700,000 validators, with nearly 99% of the balances participating in the staking process. While the 32 ETH requirement per validator does somewhat inflate this figure, Lido, the most recognized staking pool, controls 32% of the staking, with Coinbase following at a 9.6% stake.
Additional Catalysts for Ethereum’s Ascendancy
Ethereum’s market sway continues to grow, despite Bitcoin achieving a 50% market share on June 19. This rise is underpinned by Ethereum’s grip on the derivatives market and its undisputed control over the NFT realm.
Ethereum: A Preferred Choice for Institutional Investors
Ether’s future contracts are a pivotal instrument for institutional trading activities such as leveraging and hedging. Ether’s cash-settled futures have been drawing institutional investors since their launch on the Chicago Mercantile Exchange in February 2021. Ether futures now hold an aggregated open interest of $5.4 billion, far outstripping BNB’s $380 million and Solana’s modest $178 million.
Ethereum’s Command in the NFT Landscape
Ethereum’s authority extends to the non-fungible tokens (NFTs) market, demonstrating that efficient and rapid transactions are not always the prime indicators of adoption. Despite hefty gas fees, Ethereum maintains its leading position in terms of buyers and overall sales. In the last month, Ethereum racked up $380 million in sales, significantly outpacing Solana, Polygon, and BNB Chain.
The data paints a clear picture of Ethereum surpassing other blockchains concentrated on smart contracts. However, Ethereum’s 20% market cap share could see some pressure if the eagerly anticipated network upgrade enabling parallel processing (sharding) fails to materialize. For the time being, though, Ethereum’s market sway remains unrivaled.