Bitcoin (BTC) continued its impressive performance, outshining the rest of the cryptocurrency market as Ethereum’s ether (ETH) and DeFi tokens experienced a decline on Tuesday.
BTC, the largest digital asset by market capitalization, initially dropped to $28,100 before rebounding to nearly $28,500, showing a slight increase over the past 24 hours.
In contrast, ETH showed weakness and fell by 1.8% to approximately $1,560 during the same period. This decline pushed the ETH/BTC ratio to a 15-month low. The broader digital asset market, represented by the CoinDesk Market Index, experienced a minor 0.6% decline.
Among the different sectors of cryptocurrencies, the CoinDesk DeFi Index (DCF) faced the most significant struggle, declining by 3.7%. This decline was led by Uniswap’s native token (UNI), which tumbled by almost 7% after Uniswap Labs announced a 0.15% fee imposition on certain trades executed through its platform.
The Sui blockchain’s native token (SUI) also suffered a sharp decline, plummeting by 7.6%. This drop in price was triggered by concerns raised by the director of the South Korean Financial Supervisory Service regarding potential supply manipulation of the token through staking. However, the Sui Foundation has denied these claims, calling them “materially false.”
Bitcoin’s impressive performance has driven its market share among all cryptocurrencies, known as the Bitcoin Dominance Rate, to over 52%, the highest level since April 2021, according to TradingView data.
Investment advisory firm ByteTree suggests that this metric could even increase further as investors eagerly anticipate the approval of a spot BTC exchange-traded fund. Additionally, the approaching quadrennial halving of Bitcoin in early 2023 is considered bullish for its price.
ByteTree analysts stated in a recent market report that crypto is currently less risky than it has been in the past two years. They also noted that despite the decreased risk, Bitcoin still possesses an upper hand in the market due to the forthcoming halving event.
Overall, Bitcoin continues to showcase its dominance and resilience within the cryptocurrency market, while Ethereum and DeFi tokens face temporary setbacks. However, the evolving nature of the market means that these dynamics can change rapidly, so investors need to stay informed and adapt their strategies accordingly.