Bitcoin’s declining market dominance is causing many altcoins to surge

The market correction of the key cryptocurrency Bitcoin continues unabated. Although the Bitcoin price is currently still able to stabilize above its previous week’s low of USD 19,500, the recent significant decline in trading volume increasingly points to a sustained price decline in the coming trading days.

For the first time in crypto market history, Ethereum (ETH) futures trading volume surpassed Bitcoin’s trading volume in August, according to analytics firm The Block. In the weeks before “The Merge”, investors are increasingly investing in the second largest cryptocurrency in order to benefit from the update to Ethereum 2.0. This was reflected in Ethereum outperforming Bitcoin by around 80 percentage points in the last few trading months.

The relative strength of Ethereum can be seen as the main reason for the decline in Bitcoin dominance to currently 39.61 percent. In addition to Ethereum, other altcoins such as Cosmos Hub (ATOM) and Chainlink (LINK) can currently benefit from the weakness of Bitcoin and have seen double-digit increases in value over the past seven trading days. On closer inspection, crypto projects in particular seem to be being bought at the moment, such as Cardano (ADA) with the upcoming Vasil Hard Fork or Aave (AAVE) with the introduction of their own stablecoin, which are experiencing important innovations in their ecosystems in a timely manner.

The European Central Bank’s (ECB) interest rate increase next Thursday should also be of great relevance for price developments on the crypto market in the coming days. If the ECB increases the key interest rate again more than expected, a decline in the prices of Bitcoin and Co. can be expected.

Price developments of the top 10 altcoins

• A look at the price development of the top 10 altcoins shows a mixed picture. Six out of ten altcoins can increase in value on a weekly basis.
• The list of winners is led by Cardano (ADA) with a 14 percent price increase, followed by Polygon (MATIC) with 10 percentage points.
• Ethereum (ETH) and Polkadot (DOT) follow with a good nine percentage points of value growth.
• Interestingly, Shiba Inu (SHIB) can also recover by a good four percentage points. Conversely, the other memecoin in the top 10, Dogecoin (DOGE), corrected a percentage point south.
• With a price drop of one percentage point, the Binance Coin (BNB) is also among the few underperformers.

Stability of the top 10

• The ongoing sideways phase, including the falling market dominance of Bitcoin, has been used by investors to invest more in other major cryptocurrencies over the past seven days.
• As long as Bitcoin cannot dynamically break out back above the previous week’s high in the USD 20,600 area and continues to lose market share in the short term, the outperformance of the other top 10 cryptocurrencies could continue.
• Should Bitcoin break below USD 19,892 at the daily closing price in the coming days, the first relevant support at USD 18,950 will immediately become the focus of investors. You can find out which price marks are likely to be relevant for the bulls and bears in the current bitcoin analysis.
• With regard to the ranking of the top 10 altcoins, there are no place changes to report for the past trading week.

Winners and losers of the week

• After two corrective weeks of trading, in which the vast majority of the top 100 altcoins dropped in value, in some cases significantly, a price recovery can currently be reported across the board.
• Around 60 percent of the 100 largest cryptocurrencies show a price increase in a weekly comparison.
• The list of weekly winners is led by the crypto project DeFiChain (DFI) with a 37 percent price increase. Even before the significant jump in price, a current DFI price analysis pointed to a possible bottoming out.
• The course of Celsius Network (CEL) has recently stabilized after a massive sell-off in the previous weeks and climbed 27 percent north on a weekly basis. In view of a price drop of more than 60 percent in the previous weeks and ongoing uncertainty surrounding the current insolvency proceedings, longer-term investments are not recommended for the time being.

Investors are currently betting on “Buy the Rumor”

• The price of Lido DAO (LDO), which is benefiting from continued high demand for Ethereum 2.0 staking offers, is also bullish.
• Interestingly, with the Cosmos Hub (ATOM) (+20 percent), Chainlink (LINK) (+13 percent) and Aave (AAVE) (+11 percent), three other cryptocurrencies are rising in double digits to the north, which, like Ethereum, are also experiencing important updates more promptly .
• The new crypto project Evmos (EVMOS) can increase in value again with an 11 percent price increase. Evmos now finds itself among the biggest weekly winners for the third trading week in a row.

Relatively small price reductions for the weekly losers

• The list of weekly losers is headed by Helium (HNT) by a wide margin. After the announcement of a possible change from the in-house custom blockchain to the Solana blockchain, investors seem disappointed and sell off their HNT holdings. In a weekly comparison, the HNT course crashes 32 percent south.
• The price of Chain (XCN) is also bearish with a 14 percent discount in value and eCash (XEC) with an 11 percent price drop. After a strong performance in the previous week, eCash increasingly took profits that caused the price to correct.
• As long as Bitcoin does not clearly decide on a course direction and ranges listlessly around USD 20,000, selective investments in the altcoin sector can still be assumed.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 1.00.