ETH Takes Market Dominance As The London Fork Upgrade Triggers Bullish Trend
After the launch of the much-awaited Ethereum London Fork on August 5th, Ethereum has been seen to be on a market-dominant level. Its price surges, especially since the beginning of 2021, have been far much higher than the crypto market leaders Bitcoin.
Ethereum Gains More Than Bitcoin in The Markets
The upgrade introduces simplicity in the Ethereum network and significantly reduces the problems facing the network.
After the recent fork, Etherum has been on a steady rise in value and is seen to be taking market dominance. Generally, the coin shot up in value to over $2835, its three months’ highest value. Currently, the coin’s prices are treading at the support level of $2700 and the resistance of $2900.
According to coinmarketcap and coingecko charts, Ethereum has made a surge of over 3.4% in the past 24 hours. This surge is not larger than bitcoin’s 5% in the past 24 hours. Furthermore, According to CMC, Ethereum’s current market Dominance is about 19%, a second to bitcoins which is 45%. So why is Ethereum said to be dominant? Compared to bitcoin and other assets at the start of the year, Ethereum is performing way better.
Bitcoin started the year at over $28k, and the coin’s value is currently $41k. Therefore, bitcoin increased by around 40% from the start of the year. Ethereum, on the other hand, increased from merely $730 to around $2700 on August 6th. Etherum’s increase is about 250%; thus, Ethereum has performed better than bitcoin this year, proving dominant.
Market Dominance To Continue
Due to the recent upgrades, it’s safe to conclude that Ethereum will continue dominating the crypto markets for weeks to come. One of the outstanding benefits coming with the current upgrade is the supply cut mechanism through coin burning.
In just 3 hours after the upgrade, Ethereum had burned over $1.7 million worth of coins, an equivalent of about 600 ETH. Burning coins at such a high rate causes demand increases, and ultimately price surges. Although it’s not likely that Ethereum will continue burning coins at such a high rate, their continuous burning process will help fix the issue of excess supply.
As the supply continues to be more manageable, it’s more likely that the coin will increasingly become more dominant in the markets. Bison Trails Protocol specialist Victor Bunin said;
“Everyone should watch as the next few weeks unfold and financial models emerge quantifying the impact of the burning on the supply of ether, which may ultimately lead to price targets.”
London Hard Fork Effect To The Crypto World
The protocol upgrade could have an enormous impact on the entire crypto economy. Before the upgrades, Ethereum-based tokens like Uniswap and Aave continuously surged in prices.
However, Pankaj Balani, an Expert at Delta exchange, still says that Ethereum is connected to bitcoin, meaning any future ETH pattern will still be dependent on bitcoins performance. Therefore, it’s still early to say how this upgrade will affect the general crypto market.