Quotes of the second largest cryptocurrency (Ethereum) in terms of capitalization broke through the $ 3900 level and came close to the landmark $ 4000 mark, as institutional interest in altcoins is growing. Thus, the capitalization of the cryptocurrency market has exceeded $ 2.5 trillion, the share of Ethereum is 18.1%. Bitcoin’s dominance fell to 42.9%.
If Ethereum is growing by leaps and bounds (by more than 12 percent per day). Then Bitcoin is marking time – that is, at about $ 58,000. Nevertheless, in a week, it also added a little.
As for Dogecoin, the subsequent growth has been attributed to the appearance of Elon Musk, CEO of Tesla and Dogecoin defender, on the hit comedy sketch show Saturday Night Live. However, the forecasts didn’t come true, moreover, the price of the asset fell.
The weekly advance ahead of the show for DOGE saw a 25% gain in the first hours of trading on Saturday, pushing its value up to a new all-time high of 0.74. However, after Elon Musk’s performance on the show, the price of DOGE dropped by 30% in less than an hour.
However, we note that due to the global attention that Dogecoin has attracted, traders have started investing in other dog-themed projects, including Shiba In (SHIB).
The cost of which has increased by 1100% in two weeks. And the growth in 30 days is 29,500%. Consequently, Ethereum (ETH) and Shibu Inu (SHIB) have both reached new all-time highs. Leading the group of altcoins by market cap.
The last jump in the SHIB price was initially associated with a message from Elon Musk. Who wrote on May 7 that he wanted to have a Shiba Inu puppy. But the exact reasons for the irrational growth remain unknown.
The growth of Ethereum has fundamental reasons
The CEO of CryptoQuant drew attention to the fact that the volume of Ethereum on exchange wallets has been decreasing since August 2020. Reducing the supply of the asset.
Recall that Fundstrat analysts predicted the growth of the Ethereum rate to levels above $ 10,000 in 2021.
The specialists of the Kraken exchange allowed the price of the cryptocurrency to soar up to $ 15,000.
JPMorgan experts believe that Ethereum’s superiority over Bitcoin in profitability in recent weeks has fundamental reasons:
– more stable liquidity (last week the liquidity shock that arose in the derivatives market hit the entire cryptocurrency market, but Bitcoin suffered more than its main competitor);
– less dependence on derivatives markets (in a market with significantly higher spot turnover, the underlying long-term position (in Ethereum) is less dependent on leverage in the form of futures or swaps);
– a stronger base of demand (Ethereum has long had higher transaction rates on the public blockchain than bitcoin. JP Morgan said this is likely due to increased activity in DeFi and other sectors).
Note also that Ethereum users didn’t have to enjoy low fees for long after increasing the block capacity. Today, the cost of transactions on the network of the second largest cryptocurrency has again reached values at which most transactions become prohibitively expensive.