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A figure has suggested that Bitcoin will once again become the driving force in the crypto market once the Ethereum merger hype has subsided.
Bitcoin Share Of Crypto Trading Volume Already Appears To Catch Up With Ethereum’s
As explained by an analyst in a CryptoQuant afterthere are some signs that BTC is once again surpassing ETH as the dominant force in the market.
The relevant indicator here is the “dominance by volume”, which measures what proportion of the total crypto trading volume is contributed by each coin in the sector.
the “trading volume” is a metric that measures the total amount of crypto involved in spot market transactions.
Here is a chart showing the trend in volume dominance for both Bitcoin and Ethereum:
The value of the metric for BTC seems to have crossed over that of ETH in recent days | Source: CryptoQuant
As you can see in the chart above, Bitcoin’s percentage share of trading volume was significantly higher than Ethereum’s in early July.
However, as the middle of that month approached, ETH started to rise slowly and rise above BTC volumes.
Related reading: Bitcoin Taker Buy Sell Ratio Hits Highest Value in 636 Days
In August, ETH’s dominance in volume remained higher than BTC’s for the entire month, save for a few brief spikes for the latter.
This continued into September, until a few days ago. The reason why Ethereum led the bear market for nearly two months was the hype created by the upcoming PoS Merge.
The quant believes that once the merger is completed in about two days, this narrative that propped up crypto volumes will be gone.
Related reading: Chiliz and Big Eyes Coin: Two Ethereum-Based Cryptos That Could Topple the Binance Crypto Project
About three days ago, BTC’s share of trading volume surpassed that of Ethereum and has been rising ever since. The analyst points out that this is one of the first signs of a shift in investor behavior around the launch of the merger.
BTC catching up on volumes on exchanges now means Bitcoin will once again be the main driving force in the crypto market shortly after the merger.
BTC price
At the moment of writing, The price of Bitcoin hovers around $22.2k, up 13% over the past seven days. Over the past month, the crypto has fallen 7% in value.
The chart below shows the trend in the price of the coin over the past five days.
Looks like the value of the crypto has been observing some upwards momentum during the last few days | Source: BTCUSD on TradingView
Featured image from Peio Bty on Unsplash.com, charts from TradingView.com, CryptoQuant.com
