Here’s how Ethereum (ETH) can help Bitcoin (BTC) increase its dominance, according to Top Crypto Analyst
Popular crypto analyst Benjamin Cowen outlines how Ethereum (ETH) could help Bitcoin (BTC), the top crypto asset by market cap, increase its dominance.
In a new video update, the trader explains how BTC’s dominance, or the overall percentage of crypto market cap comprised of Bitcoin, ended up collapsing by 2020 from about 73% to 41.18% at the time of writing.
Cowen says Ethereum’s impending shift from a proof-of-work network to a proof-of-stake network could result in investors reallocating their funds to the leading digital asset, suggesting that the upgrade from ETH could be a sell-on news event.
“When will [BTC’s dominance level] Turn around? When is it going back the other way? If I were just speculating, one of the things I’d have to think about is what major events are about to happen, at what point the narrative might change, and maybe there are various portfolio rebalancings?
I think one of the biggest things is obviously the merger for Ethereum. There’s certainly a lot of momentum behind that at the moment… and that’s theoretically coming in September, where it’s moving from proof-of-work to proof-of-stake…
I wouldn’t be that surprised to see that [Bitcoin’s] The dominance may be starting to reverse again in September if it hasn’t by then and the reason is that you are again attending this major event for Ethereum and it seems like a reasonable place for people to do some could reallocate their portfolios.”
However, Cowen notes that it’s possible the merger could be delayed, as has been the case many times before over the years.
Bitcoin is changing hands at $22,947 as of this writing, up 1.8% on the day, while ETH is hovering at $1,689, up 5% over the past 24 hours.
Don’t miss a thing – Sign up to receive crypto email alerts straight to your inbox
Check the price action
Follow us on Twitter, Facebook and Telegram
Surf the Daily Hodl Mix
Check the latest headlines
Disclaimer: Opinions expressed on The Daily Hodl are not investment advice. Investors should do their due diligence before making any risky investments in Bitcoin, cryptocurrency or digital assets. Please note that you transfer and trade at your own risk and any losses you incur are your responsibility. The Daily Hodl does not recommend the purchase or sale of cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Sergey Nivens/monkographic/Sensvector
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers