With the Ethereum merger successfully completed, bitcoin saw its largest network of proof-of-work competitors wiped out. While the pioneering digital asset had retained the largest share of proof-of-work networks before the Ethereum merger, it now controls the market capitalization of these coins almost entirely. So, as the crypto market celebrates the latest Ethereum update, it also gives the bitcoin community something to celebrate.
Bitcoin now at 94% dominance
Following the release of Ethereum as a proof-of-work network, the top 10 proof-of-work coins now share a combined market capitalization of $403 billion. Bitcoin alone commands a massive market capitalization of $378 billion, making it not only the largest proof of work, but also the largest cryptocurrency by market capitalization. Given this, bitcoin now controls around 94% of the market capitalization of all proof-of-work coins.
The second largest proof-of-work coin by market capitalization is now Dogecoin at $7.8 billion. The meme coin, which rose to prominence during the 2021 bull run, continues to see favorable growth in the crypto market, although its price is currently down more than 90% from its level. record.
Ethereum Classic comes in 3rd place with a market capitalization of around $5.2 billion. Interestingly, Ethereum Classic had achieved this market cap by capitalizing on the merger hype. Additionally, Ethereum miners who were kicked out of the network have started transferring their mining capacity to what is known as the “original Ethereum,” causing its price to spike.
Litecoin and Monero come in at 4th and 5th place, with market caps of $4 billion and $2.6 billion, respectively. The latter is interesting in that it is an untraceable private coin, which makes it popular among cryptocurrency investors who wish to keep their transaction completely secret.
Struggling with market dominance
Although bitcoin is now showing significant strength on proof-of-work coins, it is still struggling to maintain its dominance in the broader crypto market. Interestingly, just five years ago Bitcoin’s crypto market dominance was over 95%. However, that has changed as altcoins gain favor among investors.
From 2017 to present, bitcoin’s market dominance has shrunk by more than 50%. It currently sits just above 40% at the time of this writing, a level it has struggled to maintain over the past two months. The bear market has also played a significant role in the decline of Bitcoin’s crypto market dominance.
The stock market crash triggered a flight to safety from investors, and they took refuge in stablecoins such as USDT, USDC, and BUSD. As a result, the market dominance of these stablecoins has increased.
Ethereum’s dominance, on the other hand, has grown significantly over the past five years. It is now the second largest cryptocurrency by market cap, with a market dominance of 19.58%.
Featured image from NewsBTC, chart from TradingView.com
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