One quant suggested that Bitcoin would once again be the mainstay of the cryptocurrency market after the Ethereum merger hype has died down.
Bitcoin Share Of Crypto Trading Volume Already Seems To Be Overtaking Ethereum’s
An analyst explained in a CryptoQuant article that there were signs that BTC could surpass ETH to become the dominant player in the market.
The relevant indicator here is the “dominance by volume,” which measures what part of the total crypto trading volume is contributed by each coin in the sector.
The “trading volume” is a metric that measures the total amount of crypto being involved in transactions in spot markets.
Below is a chart showing the overall trend of Bitcoin’s dominance relative to Ethereum.
Recent days have seen the value of BTC seem to surpass that of ETH. Source: CryptoQuant| Source: CryptoQuant
As you can see in the above graph, the Bitcoin percentage share of the trading volume was significantly higher than Ethereum’s during the start of July.
However, ETH began to rise as it approached the middle of the month and passed the BTC volumes.
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In August, the ETH dominance by volume remained higher than BTC’s for the entire month, save for a couple brief spikes for the latter.
The trend continued until September when it slowed to a mere few days ago. Ethereum’s dominance in the bear market over the past two months is due to the excitement surrounding its upcoming PoS merger.
The quant believes that once the merge is finished in approximately two days, this narrative that kept the crypto’s volumes up will be gone.
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Around three days ago, BTC’s share of the trading volume crossed over that of Ethereum’s and has since stayed up. This is an early sign of a shift in investor behavior following the launch of the merge, according to the analyst.
BTC surpassing exchange volumes means Bitcoin will become the dominant force within the crypto market soon after the merger.
At the time of writing, Bitcoin’s price floats around $22.2k, up 13% in the last seven days. The crypto’s value has fallen 7% over the last month.
The chart below shows how the currency’s price has changed over the course of five days.
The crypto market has shown some signs of gaining momentum over the past days. Source: BTCUSD on tradingView| Source: BTCUSD on TradingView
Peio Bty featured image on Unsplash.com. Charts by TradingView.com. CryptoQuant.com.