Bitcoin’s Market Dominance Index Close to Multi-year High: Report

According to data from TradingView, on Tuesday, Bitcoin had a market dominance of 51.2%, nearing its high in June 2021 of 52%.

This surpasses major altcoins like Ethereum and reflects Bitcoin’s strong performance this year. At 2:28 p.m. ET, Bitcoin was being traded for $27,354 according to CoinGecko, maintaining its flat trend over the past seven days but still showing a 66% increase in value since the beginning of the year, compared to Ethereum’s 32% increase.

However, according to Deutsche Digital Assets Head of Research André Dragosch, there are many reasons for the underperformance of Ethereum and other altcoins compared to Bitcoin.

One significant factor is the lackluster response of institutional investors to the newly-launched Ethereum Futures ETFs in the US, with only a minimal amount of net inflows reported last week.

Dragosch also mentioned a research paper that suggested that the Bitcoin blockchain may have the capability to handle the smart contract computations of the Ethereum network, potentially impacting Ethereum’s dominance.