The cryptocurrency market has experienced a significant correction, with major digital assets recording substantial losses over the past 24 hours. Ethereum (ETH) has been particularly weak, not only leading the decline in price but also seeing its market dominance fall to a yearly low. This has raised concerns about its long-term competitiveness and overall market position.
Top Non-Stablecoin Cryptocurrencies See Broad Declines
Market data from the past day shows that nearly all top-ten non-stablecoin cryptocurrencies faced downward pressure:
- Bitcoin (BTC): $75,458.93 | 24h: -8.94% | 7d: -8.18% | 30d: -12.34%
- Ethereum (ETH): $1,465.36 | 24h: -18.24% | 7d: -18.79% | 30d: -31.23%
- XRP: $1.68 | 24h: -19.21% | 7d: -18.59% | 30d: -28.41%
- BNB: $531.62 | 24h: -9.79% | 7d: -11.03% | 30d: -10.89%
- Solana (SOL): $97.59 | 24h: -17.97% | 7d: -22.84% | 30d: -29.53%
- TRON (TRX): $0.2223 | 24h: -6.56% | 7d: -4.25% | 30d: -10.63%
- Dogecoin (DOGE): $0.1323 | 24h: -19.59% | 7d: -19.55% | 30d: -32.50%
- Cardano (ADA): $0.5207 | 24h: -18.37% | 7d: -19.90% | 30d: -36.65%
- UNUS SED LEO: $8.86 | 24h: -3.29% | 7d: -2.69% | 30d: -10.10%
- Toncoin (TON): $2.85 | 24h: -12.09% | 7d: -27.03% | 30d: -3.83%
Ethereum’s decline stands out, with a 30-day loss of over 31%, signaling a shift toward more conservative investor sentiment.
ETH/BTC Ratio Breaks Long-Term Technical Support
The ETH/BTC ratio, which measures Ethereum’s market cap relative to Bitcoin’s, has been on a gradual decline since its 2017 peak. It has now broken below a long-term ascending support trendline, suggesting that the long-held expectation of the “Flippening”—where Ethereum’s market cap would surpass Bitcoin’s—is becoming increasingly unlikely.
The ratio has fallen to the lower boundary of a decadelong wedge pattern, indicating a bearish technical breakdown and continued downward momentum.
Market Cap Dominance: Ethereum Under Double Pressure
According to the latest data from CoinMarketCap, as of April 7:
- Bitcoin’s market dominance reached 63.0%, a new yearly high.
- Ethereum’s market share fell to just 7.5%, down from 9.1% a month earlier.
- Ethereum’s dominance is at its lowest point in 2024, suggesting sustained capital outflows.
Weak On-Chain Activity and Declining Gas Usage
Data from Etherscan’s Gas Tracker shows that the primary transactions on the Ethereum network are related to USDT transfers, Uniswap swaps, and Aave lending operations. However, overall gas usage has declined significantly, indicating reduced demand for on-chain transactions.
Ethereum is currently facing multiple challenges: falling prices, declining market share, broken technical structures, and weak on-chain activity. Although it remains the leading smart contract platform, it must regain market confidence to avoid falling further behind Bitcoin.
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Frequently Asked Questions
What is market dominance in cryptocurrency?
Market dominance refers to the percentage of the total cryptocurrency market cap that a specific asset represents. It helps gauge the asset’s relative size and influence within the market.
Why is Ethereum underperforming Bitcoin recently?
Ethereum has faced stronger selling pressure due to reduced on-chain activity, declining DeFi engagement, and a loss of investor confidence compared to Bitcoin.
What does the ETH/BTC ratio indicate?
The ETH/BTC ratio shows the relative performance of Ethereum against Bitcoin. A declining ratio means Ethereum is weakening compared to Bitcoin, both in price and market sentiment.
Is Ethereum still a good long-term investment?
While Ethereum remains a major platform for decentralized applications, its short-term challenges require careful evaluation. Long-term potential depends on network upgrades, adoption trends, and broader market conditions.
How does gas usage reflect Ethereum’s health?
Gas usage measures the computational effort required for transactions on Ethereum. Lower gas usage often suggests reduced network activity, which can indicate declining demand or higher efficiency due to scaling solutions.
What factors could help Ethereum recover?
Key factors include successful implementation of Ethereum 2.0 upgrades, increased adoption in decentralized finance, and improved scalability and transaction efficiency.
Cryptocurrency investments carry significant risk. Prices are highly volatile, and investors may lose their entire capital. Always assess your risk tolerance and conduct thorough research before investing.