Ethereum’s Price Dominance Could Continue Into The New Month
Ethereum has been dominating the crypto market since the rally began. The digital asset had outperformed even bitcoin during this time, which saw a higher drive in its price compared to its larger counterparts. Even now, this outperformance continues to wax stronger. However, as the month of October draws to a close, the question becomes if Ethereum would be able to maintain on this part, and indicators are pointing in the affirmative.
Ethereum Dominates Crypto Market
The end of the month of October has come with glad tidings for Ethereum. Before the surge in price, there was a marked increase in the network activity for the digital asset. The first was a rapid increase in the number of daily active wallets on the blockchain which had reached a new high for 2022.
Next, the accumulation among the large whales became apparent given the large volume of ETH that was flowing out of centralized exchanges on a daily basis. Between a large dormant whale wallet becoming active and staking thousands of coins on the Ethereum beacon chain contract, and small and large investors taking a stronger stance, the price of Ethereum had been primed for a good rally.
ETH market dominance remains above 20% | Source: ETHUSD on TradingView.com
The rally came just ahead of Elon Musk’s takeover of Twitter and the entire crypto market rallied with it. However, Ethereum’s movements were especially prominent with only a small handful of assets in the market performing better than it. This dominance of crypto market prices actually saw more than $500 million in short positions wiped out from the market in 48 hours, marking a new liquidation record for the digital asset.
Will ETH Hold This Stance?
Ethereum lost some of its gains from last week but the digital asset still remains in a good position to continue its market dominance. However, to do this, the cryptocurrency would need to see continued network growth, which will serve as a beacon for more growth.
An example of this would be the increase in Ethereum address activities that were previously seen right around the start of the price rally. Since then, the network activity has been on a decline, which is in line with the drop in the price of ETH, according to data from Santiment.
Ethereum’s total market dominance also remains high. It continues to trend right above 20%, sitting close to two-month highs. If ETH continues to steal market share from Bitcoin as it has done in the last two months, it is expected that its price dominance will also continue.
ETH maintains dominance of the crypto market | Source: Santiment
Featured image from CryptoSlate, chart from TradingView.com
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