Crypto market gains resume as Ethereum merger nears
Sentiment in the crypto market had turned more positive in the month of August, and this had led to the digital assets in the space returning double-digit growth in the first week of the month. However, the market has not been able to sustain its bullish trend properly and cryptocurrencies are starting to lose the gains they had put on in the first week. While the assets are mostly staying at positive levels, the increase for the previous week is noticeably smaller than the previous week.
Weekly gains fall across the board
The weekly gains across the crypto market have been down for the past week. The Small Cap index remains the apparent winner throughout the week, as expected during such recoveries. But it was nowhere near the gains recorded for the previous week.
Small Cap altcoins came out on top with an 8% gain for the last week. This put it 2% ahead of the Mid and Large Cap Index and 5% better than Bitcoin’s performance. However, it should be taken into account that small cap altcoins have more volatility compared to the other indices. Hence the large fluctuations in gains and losses.
The Large Cap index made a surprise move last week by rivaling the returns of the Mid Cap index. Usually, in cases like these, Mid Cap tends to outperform along with Small Cap, but last week it posted a 6% gain, the same as the Large Cap index.
Bitcoin was the worst performer of the bunch once again. It only saw a 3% gain, keeping a noticeable distance from the rest of the indices.
Bitcoin sees decline in crypto market dominance
Bitcoin has seen its crypto market dominance wane over the past two years. With the entry of popular cryptocurrencies such as Ethereum, the leading asset has had to give up more market share to make room for others. But even with so much market share already taken from the pioneer cryptocurrency, altcoins continue to dig their heels in.
Last week, bitcoin registered yet another decline in market dominance. The 0.42% taken over by altcoins has now dragged bitcoin’s dominance down to the 40% territory. Meanwhile, Ethereum is seeing an increasing market share. The altcoin added 0.89% last week, bringing its market dominance above 20% to 20.74% at the time of writing.
Stablecoins are also losing market share as investors start taking more risks. USDT, USDC and BUSD all had falls of 0.03%, 0.17% and 0.03% respectively. Surprisingly, Dogecoin added 0.15% to its market dominance, while Solana saw a 0.01% increase.
The decline has seen more than $50 billion wiped off the crypto market cap, bringing it to $1.10 trillion at the time of writing.
Featured image from Analytics Insight, chart from TradingView.com
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