bitcoin (BTC) is regaining market share from altcoins after its market cap dominance hit its highest level since November 2021 last week.
Bitcoin Reclaims Market Cap Presence
After suffering from record low prices in November, the latest moves have seen Bitcoin recover some of its lost ground against altcoins.
With the the tables are apparently turning nowthe strength goes to BTC, which managed to maintain a 40% dominance throughout the second half of last month.
Market cap is far from a perfect measure of market strength, as it pits established tokens against those with a short history and does not take into account the work done or the value behind a crypto’s market cap. -currency given.
The realized cap, which values each unspent trade output (UTXO) based on the price at which the coins involved in the trade were last moved, is favored by analysts.
Unlike standard market capitalization, realized capitalization has remained more or less constant since all-time highs in November, currently standing at $453 billion, according to data from on-chain analytics firm Messari. confirmed.
Ethereum fees now eclipse Bitcoin
When it comes to realized capitalization, Ether’s metric has seen a steeper retracement since the fourth quarter of last year.
“Ethereum is not a purpose-built value storage and settlement network, Bitcoin is,” analyst Dylan LeClair wrote Tuesday on the issue of fees.
“ETH has become less effective as a settlement network since launch as its token has appreciated in value.”
Data from on-chain analytics firm Glassnode showed the drop in value transferred to the Ethereum blockchain for $1 fee compared to Bitcoin.
Other figures added that Bitcoin fees now amount to just 1% of the fees paid for ETH transactions.
“I almost couldn’t believe it when I saw it, BTC currently at ~1% of $ETH in terms of how much people are paying to use the network,” VC partner Chris Burniske, who downloaded the numbers on Twitter, commented.