Ether (ETH) has been making waves in the cryptocurrency market recently. After the successful deployment of the long-awaited Shanghai upgrade, ETH’s price rallied above $2,000 late on Wednesday. This surge in price has caused a drop in Bitcoin’s (BTC) dominance rate, which had risen to an almost two-year record high.
According to data from TradingView, BTC’s dominance rate rose to as high as 49.06% early on Wednesday, before retreating to 48.12% as ETH’s price continued to rise.
This is the first time in over 21 months that BTC’s dominance rate has been around the 49% level. In contrast, ETH’s dominance rate surged to 19.87% on Thursday, marking a one-month high.
BTC’s dominance rate is a metric that shows the BTC market capitalization’s share of the total market cap of the cryptocurrency market.
This metric is crucial in assessing the relative strength of BTC, the largest cryptocurrency by market value, compared to the broader crypto market. It can also help identify periods when altcoins outperform BTC, which is known as an altcoin season. Similarly, ETH’s dominance rate shows the second largest cryptocurrency’s relative value to the crypto market.
ETH’s improved performance has caused a reduction in BTC’s share of the crypto market. This shift has come after the successful deployment of the Ethereum network’s Shanghai upgrade, also known as Shapella.
The upgrade was highly anticipated by the crypto community, and its successful deployment has boosted investor confidence in ETH’s potential to outperform BTC in the long run.
