What is the Current Ethereum Dominance?

The current Ethereum Dominance is

Defining The Ethereum Dominance Excluding Stable Coins Metric: A Comprehensive Overview

In the dynamic realm of cryptocurrency, "Ethereum Dominance" serves as a critical metric, illuminating Ethereum's proportionate value within the total cryptocurrency market capitalization. However, this figure often incorporates the value of stable coins—cryptocurrencies designed to have a stable value by being pegged to assets like the U.S. dollar or gold.

By excluding these stable coins, we obtain a clearer, undiluted perspective of Ethereum's intrinsic market position and its relative significance amidst other volatile cryptocurrencies.

This refined metric provides investors and analysts with a purer understanding of Ethereum's market strength and influence. Without the stabilizing effect of the stable coins, the dominance metric becomes a direct reflection of Ethereum's adoption, utility, and investor sentiment.

As Ethereum undergoes various technological advancements and faces competition, monitoring this specific metric will be instrumental for those wishing to gauge Ethereum's evolving role in the crypto ecosystem.

Factors Influencing Shifts in Ethereum Dominance

Ethereum, as a foundational pillar in the cryptocurrency ecosystem, has its market significance reflected in its dominance metric.

Ethereum dominance showcases the cryptocurrency's market capitalization as a percentage of the entire cryptocurrency market, excluding stable coins. This indicator is pivotal for traders and investors, providing insight into Ethereum's relative strength and position in the broader cryptocurrency market.

Multiple factors can catalyze shifts in Ethereum dominance. Firstly, adoption rates play a monumental role. As Ethereum's underlying technology continues to gain traction - be it through decentralized applications (DApps) or smart contracts - its dominance can potentially surge.

Conversely, challenges in scalability, high gas fees, or competitors introducing more efficient platforms can dampen adoption rates, leading to a decrease in Ethereum's market relevance.

Furthermore, Bitcoin, often termed 'digital gold', exerts its own gravitational pull in the crypto universe. An uptick in Bitcoin's adoption or significant bullish trends can lead to capital moving from altcoins to Bitcoin, affecting Ethereum's dominance inversely.

Another pivotal factor is technological advancements and network updates. For instance, Ethereum's transition to Ethereum 2.0, which aims to address existing scalability and security concerns, could significantly boost its dominance if successful.

On the other hand, regulatory challenges or security breaches can undermine investor confidence, leading to shifts in market capitalization. By closely monitoring these factors, one gains a comprehensive understanding of Ethereum's position and can make more informed strategic decisions in the crypto arena.

Crypto Investors' Perspective: Decoding Ethereum's Strategic Position

Ethereum, since its inception, has continually commanded a top position in the cryptocurrency sphere, second only to the pioneering Bitcoin.

A significant reason behind Ethereum's sustained dominance is its unique value proposition: it introduced the concept of programmable contracts into the blockchain.

This innovation, known as smart contracts, has facilitated countless decentralized applications (DApps) to be built on its platform, opening doors to sectors like decentralized finance (DeFi), gaming, and more. Ethereum's capability to be more than just a medium of exchange, but also a platform for decentralized development, has made it indispensable in the crypto landscape.

From an investment standpoint, Ethereum's resilience and adaptability have been notable. Ethereum's continual network upgrades, most prominently the anticipated Ethereum 2.0 transition, aim to address its scalability and efficiency challenges.

These proactive developmental strides signal to investors a commitment to long-term viability and growth. Additionally, the Ethereum blockchain's burgeoning ecosystem of tokens, many of which are ERC-20 or ERC-721 based, cement its position as a foundational pillar in the crypto world.

A vast majority of ICOs (Initial Coin Offerings) and token projects are launched on the Ethereum platform, driving liquidity, volume, and further bolstering its market dominance.

Interpreting the Ethereum Dominance Charts: Expert Tips

The Ethereum Dominance chart is on a lightweight TradingView chart. Hovering over the chart will give you the Ethereum Dominance Excluding Stable coins on that certain date.

The Chart Features a legend up top which gives you the date and the dominance at that certain date. You can scroll back to the date till the first time Ethereum started trading to see its rise in dominance level.

One of the best ways to interpret the Ethereum dominance excluding stable coins is by performing technical analysis on the chart. Cryptocurrency analysts can use a variety of classical analysis on the chart such as support and resistance zones and trend analysis.

In the next subsection we go over how to perform technical analysis on the chart.

Speculators' Guide: Predicting Market Movements with The Ethereum Dominance Excluding Stable Coins Chart

Support and Resistance Analysis on the Ethereum Dominance Excluding Stable Coins Chart

The Ethereum dominance chart supports the rules of classical technical analysis, support, and resistance.

There are certain support and resistance zones within the chart that, when the Ethereum Dominance reaches them, increases the likelihood of the metric bouncing or getting rejected from that zone.

This can be used to predict where the Ethereum dominance is likely headed. Of course, nothing is certain.

The Ethereum dominance bounces and gets rejected from various support and resistance zones in historical times. We can see the general support and resistance zones in the Ethereum dominance chart below.

EThereum Dominance Support and Resistance ZOnes

Macro Trend Analysis with the Ethereum Dominance Chart

There is a saying that says: “The Trend is your friend until the end.” The Ethereum Dominance chart can be used to get insights into the current trend in which the Ethereum Dominance is in. Like with ordinary priced assets, the Ethereum Dominance has its own trends.

A bear trend within the Ethereum dominance excluding stable coins chart illustrates that most other crypto assets or Bitcoin are outcompeting Ethereum. In other words, Bitcoin or other crypto assets are retaining or attaining value much better than Ethereum.

A bull trend indicates that Ethereum is retaining its value or appreciating faster than other crypto assets such as BTC and BNB.

Holding Ethereum when the Ethereum dominance chart is in a bear trend means two things for crypto asset holders.

Firstly, that other large assets are appreciating with regards to dollars at a much faster rate, or that Ethereum is losing value in higher degrees than similar crypto assets such as BNB and Bitcoin. Holding Ethereum when Ethereum is losing value quicker than other crypto assets indicates that the asset holder has more risk holding Ethereum than other crypto assets, and they may need to reposition themselves.

In the image below we can see how the Ethereum Dominance excluding stable coins chart can be used to figure out the trend.

Ethereum Dominance Trends

Why Exclude Stable Coins from Ethereum Dominance Metrics?

Stable Coins and Their Distinct Nature in the Crypto Ecosystem

Stable coins have carved out a unique niche within the cryptocurrency world. Unlike assets like Ethereum, Bitcoin, and various altcoins, which can be highly volatile, stable coins are designed to peg their value to a stable asset, typically traditional fiat currencies like the US Dollar or the Euro.

This inherent stability means their market behavior is distinct, often being unaffected by the wild price swings or the speculative behavior seen in other cryptocurrencies. Consequently, their inclusion can often skew the true representation of a cryptocurrency's dominance, especially in the short term during volatile market conditions.

The Purity of the Ethereum Dominance Metric

When analyzing Ethereum's dominance in the crypto space, it's paramount to get a clear picture of its standing without the influence of stable coins. By excluding them, we obtain a more undiluted and genuine reflection of Ethereum's market position, and the confidence investors have in its potential.

This focused approach allows traders, investors, and analysts to make more informed decisions, providing insights into Ethereum's true competitive landscape and how it fares against other non-stable coin cryptocurrencies in the market.

Stable Coins Excluded in the Ethereum Dominance Excluding Stable Coins Chart

The Ethereum Dominance Excluding Stable Coins excludes most if not all stable coins in the world.

Below is a list of all the stable coins that are excluded in the Ethereum dominance metric which is used as data points for the chart above.

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!