Help with my assignment!
Read Time:2 Minute, 31 Second

Following the Terra LUNA and UST fallout, digital currency markets have dropped in value as the crypto economy dropped 6.93% from $1.356 trillion on May 22, to today’s $1.262 trillion. Amid the market carnage, bitcoin’s market dominance has increased to 43.8%, reaching the highest value since October 30, 2021. Moreover, ethereum’s market dominance has slid from 19.56% on April 16, to today’s 17.1%.

Bitcoin Dominance Reaps Rewards from Terra’s Demise

  • Bitcoin (BTC) dominance among the 13,445 crypto market caps in existence today is 43.8%, the highest it has been in roughly 209 days, since October 30, 2021. The rise in market dominance follows the recent Terra blockchain fiasco that caused a significant amount of value to leave the crypto economy.
  • For example, amid LUNA’s and UST’s death spiral and the crypto market carnage on May 10, 2022, archived data indicates BTC dominance was 39.4%, while ethereum (ETH) dominance was 18.4%. On that day, BTC was changing hands for $30,118 and ETH was swapping for $2,225 per unit.
  • The spike on October 30, 2021 was a brief BTC dominance rise to 44%, as dominance hit a low of 40% a month prior, during the first week of September 2021. Prior to the October 30 BTC dominance level, August 21, 2022 was the last time BTC was in the same range in terms of dominance among the 13,445 crypto market caps.
  • In terms of dominance, BTC beats ETH in not only market capitalization today, but also daily trade volume and 24-hour mining reward revenue.

  • As ETH dominance sinks and BTC dominance rises, a number of other alternative assets have faltered in value and have lost significant market cap dominance.
  • For example, on September 4, 2021, XRP’s dominance was 2.53% and today XRP dominance is only 1.51%. One alternative crypto asset that has seen its dominance rise is tether (USDT) as USDT’s market valuation dominance was above 3% on September 4, 2021, and today it’s 5.78%.

What do you think about bitcoin’s dominance increasing and ethereum’s dominance decreasing after Terra’s demise? Let us know what you think about this subject in the comments section below.

One thought on “After the Terra LUNA Fallout, Bitcoin Dominance Climbs Higher While Ethereum’s Valuation Shrinks

  1. To all the Bitcoin maxis out there, when did you feel you officially became a Bitcoin maxi? What was the tipping point?

    When most people get into cryptocurrency it is in the midst of a bullrun (that was me in 2017), and alt-coins are all the rave. It's a race to find the next big thing and next coin about to moon. I think it would be hard for anyone to become a BTC maxi during a bull run.

    I find myself trending in that direction after seeing 1 cycle (I got almost completely out in 2018 and re-entered the space in 2020, can't say i followed the 18-19 bear run).

    Now I find myself only DCA'ing only into BTC as opposed to ETH + Algo and occasionally some alt coins (my ETH:BTC ratio is very high and want to balance it out). I struggle to see any coin keeping up with BTC aside from ETH, and won'tt consider hardly any other coins.

    I honestly never thought I would get to this point where I am so into BTC.

    So, it makes me wonder at what point you became a BTC maxi, and what did it? I imagine it was a bear cycle, or having entered the space in the early days, but genuinely curious how you came out your bitcoin “maxi” perspective

Leave a Reply

Your email address will not be published.

  • bitcoinBitcoin (BTC) $ 19,505.94
  • ethereumEthereum (ETH) $ 1,336.99
  • tetherTether (USDT) $ 1.00
  • usd-coinUSD Coin (USDC) $ 0.999958
  • bnbBNB (BNB) $ 283.51
  • xrpXRP (XRP) $ 0.497695
  • binance-usdBinance USD (BUSD) $ 1.00
  • cardanoCardano (ADA) $ 0.437231
  • solanaSolana (SOL) $ 34.01
  • dogecoinDogecoin (DOGE) $ 0.060579