Key Points
- Ethereum has been criticized for underperforming compared to other top cryptocurrencies.
- Bitcoin’s dominance could potentially trigger explosive growth for Ethereum.
Ethereum, often referred to as the king of altcoins, has recently faced criticism for its underperformance compared to other top cryptocurrencies.
However, the situation could change, with Bitcoin’s dominance possibly acting as a catalyst for Ethereum’s growth.
Ethereum vs Bitcoin
From its lowest point this month, Ethereum has seen an increase of approximately $100.61 billion in its market cap. Bitcoin, on the other hand, gained over $480 billion in market cap during the same period.
One of the major indicators of Ethereum’s underperformance is the fact that it has not reached new All-Time Highs (ATHs), unlike some of its top rivals.
For instance, Ethereum’s Total Value Locked (TVL) reached its peak at $66.77 billion on November 12th, which was still lower than its June TVL peak at $72.72 billion.
Similarly, Ethereum’s on-chain transactions reached their highest at 1.29 million transactions on November 12th, yet this number was still lower than its peak daily transaction count in October.
Price Action and Bitcoin Dominance
Despite these figures, it’s important to note that Ethereum has shown a bullish performance in November, with a rally of 44.61% from its lowest to its highest price in the last two weeks.
However, while Bitcoin has been in price discovery, Ethereum is still far from its historic ATH.
Bitcoin’s dominance has been increasing for months, suggesting that most of the liquidity coming into the crypto market has been directed towards Bitcoin.
This could change if Bitcoin’s dominance starts to decline, which may already be happening according to some indicators.
The gap between large holder inflows and outflows for Ethereum has been widening, suggesting that Ethereum may be building up more momentum as Bitcoin’s dominance starts to decline.
As of November 15th, large holder inflows were notably higher at over 488,000 ETH, while large holder outflows were higher at 312,430 ETH.
