The Terra LUNA/UST collapse has seen digital currency markets drop in value. On May 22, the crypto economy fell 6.93% to $1.356 trillion, and today it is $1.262 trillion. Despite all the market chaos, bitcoin’s market dominance increased to 43.8%, making it the most valuable cryptocurrency since October 30, 2021. Moreover, ethereum has lost its market dominance from 19.56% in April 16 to 17.
Bitcoin Dominance reaps the rewards of Terra’s demise.
Bitcoin (BTC). dominance is 43.8% among the 13,445 crypto-market caps currently in existence. This is the highest level in approximately 209 days since October 30, 2021. This rise in market dominance is due to the recent Terre blockchain fiasco which caused significant value to be lost from the crypto economy.
In the midst of LUNA’s death spiral, UST’s collapse, and the crypto market chaos on May 10, 2022 archived shows BTC dominance at 39.4% and ethereum dominance at 18.4%. On that day, Bitcoin was being traded for $30,118, while Ethereum was trading for $2,225 each.
The October 30th spike was a short BTC dominance increase to 44%. This occurred after dominance fell to 40% one month earlier, in the first week of September 2021. Before the October 30 dominance, August 21st 2022 was the last time Bitcoin was within the same range of dominance in terms among the 13,445 crypto market cap.
BTC is the dominant cryptocurrency today. It surpasses Ethereum not only in market capitalization, but also in daily trade volume, and 24-hour mining reward income.
Transaction fees for Bitcoin are much lower than the average BTC transaction cost of 0.000068 BTC, or $1.98 per transact. The average ETH transaction fee is 0.0045 ETH, or $8.06 per transact.
While ETH’s average transaction fee is 0.0022 ETH, or $3.84 in today’s dollars, BTC’s median-sized transaction cost is 0.000026 BTC (or $0.753 per transfer).
A number of alternative assets are losing market dominance as ETH dominance falls and Bitcoin dominance increases.
For example, XRP had a dominance of 2.53% on September 4, 2021. Today, XRP has a dominance of 1.51%. Tether ( USDT) is another crypto asset that has enjoyed a rise in dominance. USDT’s market dominance dominance was over 3% on September 4, 2021 and it’s now at 5.78%.
