Bitcoin’s dominance of the total cryptocurrency market value is waning as its second-largest rival Ether hits the $ 3,000 milestone, suggesting there is room for more than one winner among digital tokens as the industry evolves.
The largest digital currency now accounts for about 46% of the total crypto market value of $ 2.3 trillion, up from about 70% at the start of the year, according to tracker CoinGecko. The second placed Ether is until 15% and a group of others outside the top doubled their share to 36% in the same period.
Bitcoin remains the largest cryptocurrency, but momentum in other tokens is increasingly attracting interest, such as Ether, which first surpassed $ 3,000 on Monday after quadrupling this year. Cryptocurrencies advocates argue that investors are more comfortable with a variety of tokens, while critics argue that the industry may be in the throes of an incentive-fueled mania.
“Ethereum is on the rise and there doesn’t seem to be much in the way,” said Edward Moya, senior market analyst at Oanda Corp., wrote in a note on Friday, adding that other tokens also saw “ new interest. ”
The current market share distribution also reflects an April shakeout in the cryptocurrency sector. Bitcoin has yet to recover all the ground it lost after dropping a record mid-April of nearly $ 64,870.
List of crypto exchanges from last month Coinbase Global Inc. in the US is the latest sign of more investors embracing the sector despite the risks of high levels of volatility and increasing regulatory scrutiny.
Ether is currently in the spotlight. An upgrade of the connected Ethereum blockchain and the popularity of the network for financial services and crypto collectibles are some of the factors cited for the rally.
Evercore ISI Strategist Rich Ross has set a target of $ 3,900 for the token. Ether was up 2.8% to $ 3,052 from 1:05 p.m. in Hong Kong on Monday.
Other cryptocurrencies have also jumped. The price of Binance Coin is up 3,460% in the last 12 months, according to CoinGecko. Dogecoin, a token that started as a joke in 2013 but now a social media favorite touted by the likes of Elon Musk, is up 15,000% to a market value of about $ 50 billion.
(Updates with markets in the eighth paragraph.)