Ethereum dominance shrinks as bitcoin gains more ground since cycle low: Glassnode

Ethereum dominance has declined since the current cycle's low, established in November 2022.

"Since the cycle low established in November 2022, Ethereum has recorded a dominance decline of over 1.5%, and the wider altcoin sector has experienced a more pronounced decline of 5.9%," Glassnode analysts specified.

According to The Block's Prices Page, the price of ether has increased by around 66% since November 2022, and the price of Bitcoin has appreciated by over 73%.

Apart from the decline in Ethereum dominance, the wider altcoin sector has experienced a more pronounced decline of 5.9% since November 2022, according to Glassnode's Weekly on-chain report.

"Since the cycle low, capital continues to accrue towards the major asset end of the digital asset risk curve, and altcoin dominance has fallen from 27.2% to 21.3%," the analysts added.

Bitcoin dominance hits highest level since April 2021

In contrast to this decline, Glassnode's report cited data that showed bitcoin dominance has risen from 38% in November 2022 to 56% of the total digital asset market today.

The Block's Data Dashboard shows that on Aug. 5 — when bitcoin's price dropped to around $49,000 — bitcoin dominance surged to a high of 59.56%. The current data indicates a bitcoin dominance level of 54.95%, with August's dominance levels for the largest digital asset by market capitalization being higher than any period since April 2021.

"With a degree of uncertainty rife amongst market investors, capital continues to flow down the risk curve, leading to a significant expansion in bitcoin dominance," Glassnode analysts said.