Bitcoin’s domination of total cryptocurrency market value is declining as its next-biggest rival Ether reaches the $3,000 milestone. The rise of Ether suggests there’s room for more than one winner among digital tokens as the sector evolves. Bitcoin now accounts for about 46% of total crypto market value. It’s down from roughly 70% at the start of the year, and Ether makes up 15%, according to CoinGecko. Bitcoin remains the biggest cryptocurrency but the momentum in other tokens is drawing increasing interest. Proponents argue investors are getting more comfortable with a variety of tokens. However, critics contend the sector may be in the grip of a stimulus-fueled mania. “Ethereum is rising and not much seems to be in its way,” Edward Moya, a senior market analyst at Oanda Corp., wrote in a note Friday, adding that other tokens were also seeing “fresh interest.”
The current distribution of market share also reflects an April shakeout in the cryptocurrency sector. Bitcoin has yet to recover all the ground it lost after tumbling from a mid-April record of almost $64,870. Ether is currently occupying the limelight. An upgrade of the affiliated Ethereum blockchain as well as the network’s popularity for financial services and crypto collectibles are among the factors cited for the rally. Evercore ISI strategist Rich Ross has set a target of $3,900 for the token. However, that’s not all, because the price of other crypto coins has been growing as well. Below, we will talk about some of those coins and their place in the market. It seems Bitcoin is no longer the only big gun on the market.
The Rise of Ethereum
Ethereum hits new record high above $3,400, extending its more than 300% rally this year. Ether’s rise has been attributed to a growing number of developers building so-called decentralized finance or DeFi applications on the Ethereum platform as well as growing institutional interest. The digital coin pared some of those gains in Tuesday morning trade in London and was trading at $3,369.74 at 11:20 a.m., according to CoinDesk data. Interest in cryptocurrencies has surged over the past year with bitcoin continuously pushing new record highs. A number of factors including rising institutional interest and major companies such as Tesla buying the digital coin have been credited with its rise.
Bitcoin has been described as “digital gold” or a store of value in times of geopolitical tumult or financial market volatility as well as a hedge against inflation. To learn more about bitcoin and it’s current state, check the blockchain website. However, Ethereum is different. It acts more as a platform that developers can build apps on. Ethereum is the name of the network or underlying blockchain technology, while ether is the digital currency used to power the platform.
The “Other” Ethereum
Ethereum Classic (ETC) continues to maintain its parabolic price action advance that began in late March. Data from crypto market aggregator Coingecko shows ETC is up almost 50% in the last 24-hour trading period as of the time of writing. Indeed, the 20th-ranked crypto by market capitalization is currently at an all-time high above $76. Retail hype is also building on ETC especially as the token is available to buy on the popular trading app Robinhood. Online search volume for Ethereum Classic is on the high, according to data from Google Trends.
This current retail hype may also be attributed to Ether (ETH) smashing its all-time high and moving beyond $3,000 for the first time. Indeed, social media sentiment points to newbie ETC holders considering the “green Ethereum” a much cheaper alternative to the ETH juggernaut. It seems that a lot of crypto coins are moving up in value. On the other hand, Bitcoin has been stagnant in recent weeks. As a matter of fact, it’s slowly losing value. However, that might be a momentary thing as it has happened before. When Bitcoin loses value even by a little, the financial world dooms the coin. We have seen it a lot of times through the years. Old investors are spelling disaster for Bitcoin every time the market shifts. We believe that it’s price will stabilize in the coming weeks. Nevertheless, whether it will continue to grow it’s a whole different story.
From a “Joke” to Absolute Success
Beside ETH and ETC, the coin that has grown most in the last weeks is Dogecoin. What started as a ruse and a “meme” coin is now a serious crypto contender. Purchases made from powerful entities as well as comments made by the likes of Elon Musk have turned DOGE into a successful coin. On top of that, Dogecoin’s value continues to grow on a daily basis.
“Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of Saturday Night Live,” wrote Edward Moya, senior market analyst at Oanda. The meme-inspired token is up nearly 30% on Tuesday and more than 11,000% this year. Dogecoin’s rally first began in February, thanks to a series of tweets from Musk, CEO of Tesla and SpaceX, and one analyst suggests that he’s also responsible for the current move. Although it started as a joke in 2013, Dogecoin has since gained a following that has helped to propel the token’s value higher, driven in part by celebrity endorsements like those from Musk, Dallas Mavericks owner Mark Cuban, Snoop Dogg and Kiss bassist Gene Simmons.
Why is Dogecoin Growing?
Konstantin Boyko-Romanovsky, CEO of Allnodes, via an emailed message, said he viewed support from Musk and fellow billionaire Mark Cuban as central to the bull thesis for dogecoin, but also said that some may perceive the crypto as more accessible compared against bitcoin, which hit a recent peak above $60,000 before cooling. “It appeals more to the general public because it costs so little. $60,000 for a single bitcoin may be intimidating to some. In a way, doge then is more like a USD but in a digital form,” he wrote.
Bubbles & manias
Moya wrote that the dogecoin bubble should have “popped by now, but institutional interest is trying to take advantage of this momentum and that could support another push higher.” Many skeptics warn that dogecoin could leave a lot of newbie investors hemorrhaging losses if they wade into the asset imprudently.