A volume has suggested that Bitcoin will again become the driving force in the crypto market once the Ethereum merge hype ends.
Bitcoin Share of Crypto Trading Volume Is Already Overtaking Ethereum
As explained by an analyst in a Cryptoquant post, there are some signs that suggest that BTC has once again surpassed ETH to become the dominant force in the market.
The relevant indicator here is “dominated by volume”, which measures how much of the total crypto trading volume is contributed by each coin in the sector.
“Trading volume” is a metric that measures the total amount of crypto involved in a transaction in the spot market.
Now, here is a chart that shows 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 graph above, Bitcoin’s percentage share of trading volume was significantly higher than Ethereum during the beginning of July.
However, as the middle of the month neared, ETH slowly began to rise and move above BTC volume.
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In August, ETH’s dominance remained higher than that of BTC throughout the month, except for a few brief spikes for the latter.
This continued into September, until a few days earlier. The reason Ethereum led a bear market for almost two months was the hype created by the upcoming PoS merge.
Quantum believes that once the merger ends in about two days, this narrative that keeps the volumes of crypto going will come to an end.
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About three days ago, the share of BTC in trading volume exceeded that of Ethereum and has remained up since then. Analysts point out that this merger is one of the earliest signs of a change in investor behavior around the launch.
BTC has now overtaken the volume on exchanges, which means that soon after the merger, Bitcoin will return as the main driving force in the crypto market.
btc price
At the time of writing, bitcoin price is floating around $22.2k, up 13% over the past seven days. In the past month, the value of crypto has dropped by 7%.
The chart below shows the coin’s price trend 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