Ethereum’s dominance over Bitcoin has been growing since July 2021, and the merge came at a time when its dominance over the flagship cryptocurrency peaked.
The chart below compares the market caps of Bitcoin and Ethereum since 2016 to determine which has the upper hand. Black areas indicate BTC/ETH dominance.
A crossing of the pink line indicates that Ethereum has peaked and outperformed Bitcoin. If it exceeds the green one, it means the opposite.
Bitcoin maintained its dominance over Ethereum throughout 2016. However, Ethereum’s bull market in 2017 allowed Bitcoin to assert market dominance. Bitcoin was able to briefly regain control in early 2018, but was soon overtaken by Ethereum again.
Bitcoin gained momentum in late 2018 and dominated Ethereum for three years. This timeframe also includes his 2021 bear market from 2018, indicating that Bitcoin had not lost its dominance over Ethereum at that time.
However, Ethereum’s dominance began to increase in July 2021. As of the end of July 2022, the pink line has been crossed, indicating that Ethereum has reached the peak of its dominance with the merge approaching. increase.
Ethereum with the best performance
The chart above shows Ethereum’s monthly returns from early 2022. This mirrors the findings of the first chart, showing that Ethereum’s best performance this year was recorded between July and August.
These months posted historically high returns of over 70%, recouping losses after the LUNA collapse.
But as we head into a global recession and Ethereum loses its merger narrative, the real question remains whether Bitcoin will start to outperform again. Is not it?
