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The two main cryptocurrencies by market cap have been experiencing short-term bearish obstacles but with long-term bullish fundamentals. The crypto ban imposed by China is one of the most prominent examples. McGlone expects $40,000 to become the new critical support for Bitcoin in the coming months. Conversely, Ethereum could move into the $2,000 to $3,000 support zone in case of any downside risk.Related Reading | TA: Ethereum Could See “Liftoff” if It’s Able to Hold One Crucial Level
Demand and adoption are rising, but our graphic depicts a notable difference from a year ago — plunging supply. At the start of 4Q20, the 12-month rate of change in the measure of Ethereum supply from Mosaic was closer to 5%. Now it’s on track to drop toward 2% because of a recent upgrade
Ethereum Taking Market Share From Bitcoin
It is due to its use cases that Ethereum has managed to attract major players and take over an important market share. As seen below, the second cryptocurrency by market cap is starting to look more of a leader. The digitalization of money and finances, as the analyst said, will continue to create demand for Ethereum. In the DeFi sector, the growth has been exponential with the total value locked of these assets reaching $100 billion versus the $20 billion recorded in 2020.On Oct. 4, the market cap of the No. 2 crypto was about 20% of the total, vs. closer to 10% at the start of 2021. Bitcoin’s dominance has weakened to about 40% from 70%. Mosaic and Coin Dance data place Ethereum atop the food chain, indicative of rising crypto values and it’s prominence as the go-to platform for smart contracts, NFTs and decentralized finances.In that sense, the report claims that investors without a position in the crypto market could be making a similar mistake to missing out on the early days of the internet.