The market capitalization of Ethereum has surpassed that of all altcoins, marking a milestone not seen since February 2021.
This achievement is attributed to several factors, including Ethereum’s first-mover advantage, pioneering implementation of smart contracts, and engaged community.
As of June 20, Ethereum’s market capitalization stands at $213.8 billion, surpassing major altcoins like Solana, Cardano, and Dogecoin. This shift in dominance is occurring for the first time in over 28 months.
Meanwhile, Bitcoin continues to dominate the crypto scene with a market capitalization of over $541.9 billion, representing nearly 50% of the total crypto market cap.
Factors Driving Ethereum’s Market Cap
Ethereum’s market cap can be attributed to several factors, including its first-mover advantage and pioneering implementation of smart contracts.
As the longest-standing platform operating with high reliability, Ethereum has gained broad adoption and is anchoring projects such as Aave and Maker, which manage billions of crypto assets.
Furthermore, Ethereum’s decentralization and security have made it a cornerstone for decentralized finance (DeFi) and non-fungible token (NFT) activity.
Engaged Community and Global Security
Ethereum’s high level of community engagement, reflected in the validator count, contributes to its security. With 623,096 live validators globally, who stake ETH to secure the network and validate blocks, Ethereum ensures a robust and decentralized network. Additionally, the distribution of validator nodes worldwide enhances the network’s security and incentivizes users to transact on-chain by requiring ETH payments.
While Ethereum’s market cap continues to rise, Bitcoin maintains its dominant position in the crypto scene. With its price surpassing $27,500 on June 20, Bitcoin’s dominance stands at around 49.9%.
This underlines the significant role Bitcoin plays in the overall cryptocurrency market. In fact, earlier on June 20, Bitcoin’s dominance rose above 50% for the first time in 2 years, further solidifying its position.