Ethereum dominance has fallen back below 10% as ETH▲$1,785.03 continues to underperform and capital rotates toward other assets.
The Ethereum market share is now below 10%, continuing a decline over two years which has seen ETH drop below half its initial dominance in the first part of 2024, as per a chart published on May 25 by crypto analyst Markus Thielen and shared by BIT, the former Matrixport crypto financial services firm.
Entitled “Ethereum’s Falling Dominance Points to a Structural Change in Crypto,” the chart compares the price of ETH against Ethereum’s dominance from January 2024 up until May, seeing ETH dominance drop from about 19% at the start of 2024 to below 10%.
Ethereum’s dominance measures ETH’s market value as a share of the total crypto market. When the number falls, it means ETH is losing relative weight, either because ETH is falling faster than the market or because other assets are rising faster.
Read also: Why Is Ethereum Price Still Dropping? ETH Technical Analysis & Market Outlook
Capital is Moving Elsewhere
Thielen argues that Ethereum’s market dominance is now less than half the level seen about two years ago, which is a sharp reversal from the 2020 to 2021 bull market, when smart contract platforms were widely expected to capture large parts of financial activity through DeFi, NFTs, stablecoins and tokenized assets.
The chart says Ethereum’s underperformance suggests capital is rotating toward other narratives and ecosystems.
The rotation is also showing up in newer ETF products. Keyrock, the crypto market maker, earlier noted that some funds and family offices have moved money out of Ethereum and Solana ETF wrappers to get exposure to Hyperliquid’s HYPE▲$73.45 token.
The two newly launched HYPE ETFs had pulled in $75 million by May 22, while spot Ethereum ETFs saw $216 million in net outflows over the same period, according to SoSoValue data.
Read more: Ethereum’s Glamsterdam: A Complete Guide to Ethereum’s Upcoming Upgrade
