It seems a wild statement to make, given the disparity in value between the two cryptocurrency
giants (at time of writing, Bitcoin’s value exceeds Ethereum’s by a factor of ten), but we’re not talking about pricing, but market dominance.
Since it kickstarted the digital currency phenomenon back in January of 2009, Bitcoin has always been way ahead in terms of its dominance of the market cap. We determine this through the comparative growth of Bitcoin as a percentage of the overall growth of the market.
As new coins enter the sector, if their growth from initial investment exceeds the market average, then their dominance increases, and Bitcoin’s decreases. This doesn’t necessarily mean a decrease in value for Bitcoin (although one often goes hand-in-hand with the other) merely that the newer currency is growing at a faster rate than the originator.
This is exactly what we are seeing at the moment with Ethereum. As of this writing, Bitcoin’s dominance is the lowest it has ever been. The Bitcoin crash of earlier this year is still in full swing and it is currently holding at just over 33% of overall market growth. Ethereum, by contrast, has seen large spikes in its overall growth despite the general sector slump, owing to several new partnerships on its blockchain that have boosted its visibility so that it accounts for 22% market dominance.
Whilst it remains the media focus, Bitcoin also remains the scapegoat for the cryptocurrency crash, and its perceived value has yet to bottom out, whilst Ethereum is focussing its attention on its Virtual Network, and the advantages it holds for businesses looking to utilise blockchain
tech in their own endeavours.
Should these factors continue on trend, there is every likelihood that Ethereum
, not Bitcoin, will dominate the market in terms of growth as early as April of this year. What this flipping of status will mean for both companies is not certain, but a sudden influx of interest and investment in Ethereum seems the most likely outcome, widening that market gap even further.