Ethereum is the biggest winner in the market after ETF approval: Glassnode
While Bitcoin has struggled since the launch of its much-anticipated spot ETF, Ethereum has emerged as a winner in the space.
Ethereum has performed better against both Bitcoin and Altcoins recently.
In its latest weekly report, on-chain analytics firm Glassnode discussed how Bitcoin, Ethereum, and altcoins have performed against each other recently.
The cryptocurrency sector as a whole has enjoyed net growth since BlackRock first applied for an exchange-traded fund (ETF) last year.
The trend in the market caps of the three asset classes over the past few months | Source: Glassnode's The Week Onchain - Week 4, 2024
This period was filled with speculation about whether various spot ETFs would pass. However, from mid-October, assets increased as confidence increased that approval would be achieved.
“Bitcoin’s market cap has increased +68.8% since BlackRock first filed for the ETF, and overall altcoin market cap has increased accordingly, up +68.9%,” the report reads. “However, Ethereum had weaker relative momentum, underperforming the broader altcoin space by -17%.”
Next, Glassnode talked about the “market capitalization dominance” of these asset classes. This measures the asset’s share of the overall valuation of the cryptocurrency sector.
The trend in the market cap dominances of these assets over the last few years | Source: Glassnode's The Week Onchain - Week 4, 2024
Following the FTX collapse in November 2022, Bitcoin’s market capitalization dominance rose significantly. However, BTC has not taken Ethereum’s share since the second-largest coin’s dominance has largely shifted sideways during this period. Instead, altcoins and stablecoins are those that have lost their dominance over Bitcoin.
The BTC spot ETF finally received approval earlier this month, but the event turned out to be a popular event for the asset. However, in the post-ETF era, a new story has emerged in the sector: the ETH spot ETF.
“Shortly after the approval of the Bitcoin ETF, several issuers submitted or proposed their intention to back an Ethereum spot ETF,” Glassnode says. “It may be more difficult to obtain approval for an ETH-based ETF as the SEC is likely to view Ether as more of an investment contract, but the market appears optimistic.”
As you can see in the chart below, Ethereum’s dominance over Bitcoin has increased.
The value of the metric seems to have gone up for ETH recently | Source: Glassnode's The Week Onchain - Week 4, 2024
As the graph shows, ETH’s market capitalization dominance over BTC has increased by about 2.9% since the latter spot ETF gained approval from the US SEC.
The altcoin side of the sector also saw a net increase during this period, but failed to catch up with ETH as altcoins have generally outperformed ETH.
ETH has gained market-share against the altcoins | Source: Glassnode's The Week Onchain - Week 4, 2024
Overall, Ethereum gained 4.2% in global dominance. “This makes ETH the biggest winner in the market movements following ETF approval,” the analytics firm explains.
ETH price
As of this writing, Ethereum is trading at around $2,230, up 1% over the past 24 hours.
ETH has plunged over the last couple of days | Source: ETHUSD on TradingView
Featured image by Bastian Riccardi on Unsplash.com, chart by TradingView.com, Glassnode.com
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