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Bitcoin continues to take a back seat this week, as other cryptocurrencies have their moment in the spotlight. Its market dominance currently sits at just 47%, down from around 76% at the turn of the year. It’s lowest ever market share was around 37%, which was at the peak of the last bull run in 2018. Will it again regain its supremacy or is this the start of a new era that could see rivals challenge for its crown?
It’s not been all bad news for Bitcoin, though. The leading cryptocurrency did manage to hit almost $59,000 on Monday - the highest it’s been since 18 April - though it has since fallen back to just below $55,000. It ended April with a decrease of 2%, which is its first ‘red’ month since September last year. Can it turn the tide in May? How much longer can it drift between $50-60k?
Bitcoin is certainly being outshone by Ethereum at the moment. The second-largest cryptocurrency by market cap is up 30% over the past 7 days and currently changing hands at around the $3,300 mark. It now has a larger market cap than Mastercard, PayPal and Bank of America. Will it continue on the same trajectory? Can it really flip Bitcoin?
There are a number of factors driving Ethereum’s recent rise. Its use in DeFi and NFTs applications have given its use cases newfound prominence, for a start. A number of commentators are also pointing to the European Investment Bank’s (EIB) recent decision to issue its debut digital bond sale, worth over $100 million, on the Ethereum blockchain. The move has led some to claim that the financial market is poised to adopt crypto technology. Will they be proved right?
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