Introduction: The Titans of Cryptocurrency - Bitcoin and Ethereum

In the ever-evolving world of cryptocurrency, two names consistently stand out from the rest: Bitcoin (BTC) and Ethereum (ETH). Bitcoin, often referred to as "digital gold", was the pioneer of this revolution, launched in 2009 by the enigmatic figure, Satoshi Nakamoto.

It introduced to the world the concept of a decentralized digital currency, operating without a central bank and offering a promise of lower transaction fees than traditional online payment mechanisms. Its underlying technology, the blockchain, serves as a public ledger for all transactions on the network, setting the standard for countless digital currencies that followed.

Ethereum, while it followed Bitcoin's debut, introduced a significant twist to the crypto narrative in 2015. Created by Vitalik Buterin, Ethereum isn't just a cryptocurrency – it's a platform that allows developers to create decentralized applications (DApps) using smart contracts.

These smart contracts automatically execute agreements without the need for intermediaries, making processes across various industries more efficient. While Bitcoin is primarily seen as a store of value, Ethereum's versatility has led it to be the backbone of many crypto-related projects.

The "Bitcoin Dominance VS Ethereum Dominance excluding Stable Coins Chart" offers a compelling visual representation of the influence and market strength these two titans wield in the crypto space, tracing their journey from 2014 to the present.

The Bitcoin Versus Ethereum Dominance Excluding StableCoins Chart Explained

This chart compares the Bitcoin Dominance and the Ethereum Dominance by combing both data lines. The chart contains the Bitcoin and Ethereum Dominance with excluded Stable Coins. Each data line has their own calculations, though they both exclude all stablecoins from within the cryptocurrency space.

Dynamics of Dominance: Key Factors Driving Changes in the Bitcoin Dominance VS Ethereum Dominance Chart

Cryptocurrency, like any financial market, is influenced by a myriad of factors that determine its ebbs and flows. The "Bitcoin Dominance VS Ethereum Dominance excluding Stable Coins Chart" serves as a barometer of the relative strength and influence of these two pioneering digital currencies.

To grasp the shifts and trends in this chart, it's crucial to understand some primary driving elements behind these dynamics.

Firstly, technological advancements and updates can significantly sway dominance. For instance, when Ethereum announces upgrades to its network, like the transition to Ethereum 2.0 or improvements in scalability, it can lead to increased investor confidence, potentially boosting its dominance over Bitcoin.

Conversely, when Bitcoin undergoes halvings – an event that reduces the reward for mining new blocks by 50% – it often leads to increased scarcity and can drive up its value and dominance.

Secondly, market sentiment and news events play a pivotal role. Regulatory news, such as a country deciding to ban or embrace cryptocurrency, can influence dominance. If a major corporation announces that it's adding Bitcoin to its balance sheet or integrating Ethereum's smart contracts into its operations, such events can shift the balance of power on our chart.

Similarly, macroeconomic factors like inflation rates, global economic downturns, or significant financial crises can push investors towards the perceived "digital gold" safety of Bitcoin or the versatile utility of Ethereum, altering the comparative dominance of the two.

Investors' Angle: Gauging Market Health with The BTC and ETH Dominance

The Bitcoin and Ethereum Dominance metric can together be used to gauge the market health.

The Bitcoin Dominance and Ethereum dominance are usually synchronous with each other in an inverted manner. When the Bitcoin dominance goes up, usually the Ethereum dominance goes down. Vice versus can be possible to.

There are moments though, when they both go up together, though these moments do not live very long. When this happens Bitcoin and Ethereum both take out dominance from the rest of the cryptocurrencies such as BNB, Litecoin and Solana. These moments are rare.

BTC and ETH Dominance Trends

In other occurrences, what also tends to happen is that the Bitcoin Dominance goes sideways, but Ethereum dominance falls or goes up.

Typically, this means that Bitcoin and the rest of the market are either outperforming Ethereum or underperforming it. Holding anything but Ethereum or only Ethereum can be critical in these moments.

BTC and ETH Dominance Trends 2

We can gauge which sectors of the market are great using the bitcoin dominance vs Ethereum dominance chart. This chart can be seen as the entire crypto market divided into 3 parts: BTC, Ethereum and the rest of the crypto market.

Let's take a recent example. When the Bitcoin dominance goes up, and the Ethereum dominance stays the same, what conclusions can we draw about the current market? Firstly, retail speculators are not interested in Ethereum but rather Bitcoin. They are not willing to speculate on far more risky assets.

Secondly, the altcoin market excluding Ethereum is currently not drawing attention from crypto enthusiasts. If the Bitcoin dominance goes up and the Ethereum dominance stays the same, it can mean one thing: the altcoin dominance excluding Ethereum, is going down.

BTC and ETH Dominance Trends 3

Historical Market Insights: The Ethereum and Bitcoin Dominance Over the Decades

The Dominance of Ethereum and Bitcoin comes in cycles like most other markets. The cycles depend on current economic trends but usually conform to a 4-year cycle. It generally starts with the bitcoin dominance going up, once it goes up and gets exhausted, then Ethereum’s market dominance goes up.

Ethereum’s Dominance goes up, gets exhausted and goes down as the cycle continues.

Below is an image of Bitcoin Starting the cycle, once Ethereum gains traction and becomes the 2nd largest cryptocurrency, then it starts having a cyclical effect on Bitcoin.

The cycle continues with BTC’s dominance going up, then Ethereum’s.

Trends in BTC and ETH Dominance Cycle

Why Excluding Stable Coins Matters in Dominance Analysis

In the intricate tapestry of the cryptocurrency market, dominance measures the market capitalization of a particular cryptocurrency as a percentage of the total market cap of all cryptocurrencies combined.

Traditionally, when talking about Bitcoin or Ethereum dominance, it indicates the relative strength and influence of these cryptocurrencies in the market. Now, you might ask, "Why exclude stable coins from this dominance chart?" The answer lies in the very nature and purpose of stable coins.

Stable coins, as their name suggests, are cryptocurrencies designed to have a stable value, typically pegged to a fiat currency like the US dollar. They act as bridges between the traditional fiat world and the volatile crypto realm, offering traders a safe haven during tumultuous market conditions.

While they play an essential role in the crypto ecosystem, especially in facilitating trades and providing liquidity, they don't represent speculative value or technological advancements in the same way Bitcoin or Ethereum do. Including them in dominance calculations can distort the true representation of market interest and investment in these leading crypto technologies.

By excluding stable coins from our "Bitcoin Dominance VS Ethereum Dominance" chart, we provide a clearer, undiluted view of how the market values these two pioneering cryptocurrencies over time.

Excluded Stable Coins in the Bitcoin Dominance VS Ethereum Dominance Chart

The Ethereum Dominance VS Bitcoin Dominance Chart excludes most if not all stable coins that are available to crypto enthusiasts. Our charts take into account all of these stable coins and subtract them out of the dominance equations to calculate each dominance datapoint that is incorporated into the dominance chart metric.

Here are most of the stable coins that are excluded from the Bitcoin Dominance vs Ethereum Dominance Chart.

Major Stable Coins Excluded

  • USDT
  • USD Coin(USDC)
  • DAI
  • BUSD
  • FRAX
  • True USD(TUSD)
  • Terra Classic USD(USTC)
  • PAX Dollar(USDP)

Other Stable Coins Excluded

  • USDD
  • Gemeni Dollar(GUSD)
  • FRAX
  • USDJ
  • Liquidity USD(LUSD)
  • Stasis Euro(EURS)
  • Venus USDC(vUSDC)

Other Stable Coins Excluded

  • VAI
  • sUSD
  • sUSD
  • Steem Dollars(SBD)
  • Venus USDT(vUSDT)
  • USDK
  • Euro Coin(EUROC)
  • HUSD
  • Reserve(RSV)
  • Celo Euro(CEUR)
  • And Many More!