Bitrabo Editorial
The market capitalization of Ethereum has exceeded that of all other altcoins in the cryptocurrency market for the first time since February 2021. According to a screenshotshared by a Twitter user, the current market cap of Ethereum is $213.8 billion, surpassing that of major altcoins such as Solana, Cardano, and Dogecoin. This milestone has been reached after more than 28 months.
Ethereum Outperforms Altcoins
As of June 20, the total cryptocurrency market cap is $1.1 trillion, with Bitcoin dominating the scene at over $541.9 billion, representing nearly 50% of the total market cap, according to CoinMarketCap data.
There are several factors contributing to Ethereum’s market capitalization. One key factor is its first-mover advantage in the sector, similar to Bitcoin. Ethereum was the first platform to implement smart contracts and has been operating with high reliability, reaching near 100%. This has led to broad adoption and the platform continues to support projects like Aave and Maker, which manage billions of dollars worth of cryptocurrencies.
Furthermore, Ethereum’s decentralization and security make it the primary platform for decentralized finance (DeFi) and non-fungible token (NFT) activity. As of June 20, data from DeFiLlama shows that Ethereum’s DeFi protocols manage over $25.2 billion in assets, accounting for more than 50% of DeFi’s total value locked (TVL).
The high number of validators across the globe contributes to the network’s security. According to on-chain data shows, there are currently 623,096 live validators who, on average, have staked 32.18 ETH to secure the network and have the opportunity to validate Ethereum blocks and receive ETH rewards. The distribution of validators globally enhances the network’s security, which requires users to pay ETH for on-chain transactions.
Bitcoin Dominates Crypto
While Ethereum’s market share is increasing, Bitcoin is also pushing higher and becoming more valuable. On June 20, Bitcoin’s price surpassed $27,500, and its dominance in the market stands at around 49.9%, highlighting its importance in the crypto scene. Earlier today, on June 20, Bitcoin’s dominance rose above 50% for the first time in 2 years.
Bitcoin is the only cryptocurrency recognized as property and a commodity in the United States, which has validated its position. This has resulted in support for its price, while some altcoins like Polygon (MATIC) and Cardano (ADA) have experienced double-digit losses following allegations by the Securities and Exchange Commission that they are “unregistered securities.”
Feature Image From Canva, Chart From TradingView