Ethereum grows: Bitcoin loses dominance

Eleven Bitcoin Spot ETFs started trading last week. One would expect the Bitcoin price to only rise. Instead, Ethereum is dominating.

The year 2023 was a great success for the number one cryptocurrency, with Bitcoin becoming the first took its place in a year-over-year comparison with traditional assets. At a stunning rate of about 105 percent, the BTC price has more than doubled within a year.

Ethereum, the second-largest cryptocurrency, grew "only" 65 percent over the same period. Traditional ETFs - Nasdaq100, DAX and S&P500 - also rose. However, volatile cryptocurrencies remain in pole position.

Bitcoin dominance declines

BTC dominance is a percentage that represents the Bitcoin share in terms of total value of all cryptocurrencies on the market. This dominance has experienced strong turbulence in recent weeks and has been dropping recently.

The reason: the approval of the Bitcoin Spot ETF. It seems that the rise in the price was an anticipation of the approval. The real price explosion did not materialize. While BTC's dominance is falling, Ethereum (ETH) has skyrocketed, taking over some of BTC's dominance. Meanwhile, hopes are rising among ETH investors that an Ethereum ETF could be the next to be approved in the U.S., although not everyone sees it that way.