Business Standard

Bitcoin’s crypto dominance declines as Ether hits $3,000

Bitcoin’s share of crypto market cap is now under 50%

- JOANNA OSSINGER

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 per cent of total crypto market value, down from roughly 70 per cent at the start of the year, and Ether makes up 15 per cent, according to tracker 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, while critics contend the sector may be in the grip of a stimulus-fuelled mania.

Cryptocurr­encies were broadly higher on Monday. Bitcoin climbed above $58,000, while Ether jumped 6 per cent to $3,151 as of 8:17 a.m. in New York.

“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.

Last month’s listing of crypto exchange Coinbase Global Inc. in the US is the latest sign of how more investors are embracing the sector despite risks from high levels of volatility and expanding regulatory scrutiny.

Ether is currently occupying the limelight.

An upgrade of the affiliated Ethereum blockchain as well as the network’s popularity for financial services and cryptocoll­ectibles are among the factors cited for the rally. Evercore ISI strategist Rich Ross has set a target of $3,900 for the token. Other cryptocurr­encies have jumped too.

The price of Binance Coin is up 3,460 per cent over the past 12 months, according to Coingecko. Dogecoin, a token started as a joke in 2013 but now a socialmedi­a favourite touted by the likes of Elon Musk, has surged 15,000 per cent to a market value of around $50 billion.

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