• Ethereum’s (ETH) post-Shanghai rally has caused Bitcoin’s (BTC) dominance rate to drop from an almost two-year record high.
• ETH’s share of the total crypto market capitalization rose to a one-month high as the successful Shanghai upgrade was deployed Wednesday evening without any issues.
• The BTC dominance rate is important to assess the relative strength of BTC compared to other cryptocurrencies and identify times when altcoins outperform or have an “altcoin season”.
Ether’s Post-Shanghai Rally Drops Bitcoin Dominance from 21-Month High
Ether (ETH) saw its price jump above $2,000 after the successful deployment of its long-awaited tech upgrade, called Shanghai or Shapella, late on Wednesday evening. This caused Bitcoin’s (BTC) dominance rate – which measures BTC’s market value compared with that of other cryptocurrencies – to drop from an almost two-year record high. As a result, ETH’s share of the total crypto market capitalization rose to a one-month high.
What is the BTC Dominance Rate?
The BTC dominance rate is used to assess the relative strength of Bitcoin – currently the largest cryptocurrency by market value – compared with that of other cryptocurrencies in circulation. It also helps traders identify periods when altcoins outperform; these periods are often referred to as “altcoin seasons”.
How Has Ether Fared Since Shanghai?
Since deploying its tech upgrade late on Wednesday evening, Ether has seen an impressive surge in its performance and price. This has reduced Bitcoin’s share of the overall crypto market capitalization and pushed ETH’s own dominance rate up to 19.87%, marking a one-month high for Ether during this period.
Why Should We Care About These Metrics?
These metrics are important indicators for assessing how well certain cryptocurrencies are performing relative to others in circulation, as well as providing insight into potential shifts in investor sentiment towards certain coins over time.
Conclusion
The success of Ethereum’s recent tech upgrade appears to have been reflected positively in both its price and overall performance against other cryptos; it has achieved a one month high in terms of both its own market capitalization and its share of the total crypto market cap combined with reducing bitcoin’s dominance over this period too.