Over the past week, the total market capitalization of the cryptocurrency market has increased by around $150 billion and reclaimed the coveted $1 trillion mark.
But at the same time, Bitcoin’s dominance — a measure of its relative market share as a whole — has fallen by more than 1.5% over the past six days. This shows that altcoins are outperforming BTC.
ETH and DeFi 1.0 outperform
Ethereum is up more than 50% in the past 7 days. The cryptocurrency touched $1,000 on July 13 and has risen since then.
During today’s session, ETH even broke above $1,600 (a total of 60% in a week), but failed to hold above that level and retraced above its current level of $1,500.
To further highlight its recent dominance, it is worth looking at the total position that was closed. In the past 24 hours alone, they amounted to about $600 million, with over $365 million coming from ETH positions.
It seems that the surge in ETH has also fueled the growth of other related cryptocurrencies. That said, these are part of the so-called DeFi 1.0 ecosystem including Polygon (MATIC), Synthetix (SNX), Curve (CRV), Uniswap (UNI), AAVE (AAVE), Maker (MKR), Fantom (FTM) etc. items) etc. The chart below visualizes their surge over the past 30 days:
The Ethereum 2.0 merger narrative intensifies
As shown in the chart above, most of the mentioned cryptocurrencies started surging after Ethereum Foundation member Tim Beiko predicted that an Ethereum 2.0 merger could happen as early as September 19 of this year.
Speaking on the matter, Beiko said:
This merger timeline isn’t final, but it’s very exciting to see it come together. Please consider this a planning schedule and keep an eye out for official announcements!
The document he attached also warned that “everything will be affected by the Goerli Merge, not an explosion.” The Goerli merger is planned for August 11.
It appears that this is the driving force behind the current growth, which is interesting considering how the merger will affect the price of ETH as it will make a huge difference to the supply dynamics of the cryptocurrency, moving it from proof-of-work to proof-of-work. Emissions model to proof-of-stake model.
Binance Free $100 (Exclusive): Use this link to sign up and get your first month of Binance Futures $100 free and 10% fees (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to get a deposit of up to $7,000.