Ethereum (ETH) Market Share Falls to Its Lowest Point Since 2019

According to CoinTelegraph and Trading View data on the 15th (local time), Ethereum's market share in the entire virtual currency market fell to 7.18%, the lowest since 2019

The market share of Ethereum, the altcoin market leader, is being greatly shaken in the global virtual currency market.

According to CoinTelegraph and Trading View data on the 15th (local time), Ethereum's market share in the entire virtual currency market fell to 7.18%, the lowest since 2019. This is close to the record low (7.09%) recorded in September 2019, a sign of the relative weakness of Ethereum. It rose slightly to 7.32% on the 16th, but it has fallen 14.12% in the past month and 41.51% this year.

Ethereum's price is also on the decline. On the 16th, Ethereum remains at the $1,569 level, down 67% from the all-time high of $4,892.

Cryptocurrency analyst Lekt Capital warned X on the 13th (local time) that "Etherium's market share is currently at the lowest level since 2019-2020," adding, "Etherium's market dominance is on the verge of hitting a new record low."

The decline in Ethereum market share is attributed to factors such as weak investor sentiment and intensifying competition among altcoins. First of all, demand from institutional investors is weakening and Ethereum spot exchange-traded funds (ETFs) are flowing out. According to Faside Investor on the 15th (local time), $6 million was withdrawn from the Ethereum ETF the day before, continuing the net outflow for five consecutive trading days.

Above all, it is evaluated that Ethereum has shrunk due to intensifying competition among altcoins. XRP, Ethereum's biggest rival by market capitalization, is quickly growing in size. Since 2019, XRP's market share has soared by more than 200%. Other rivals, Binance Coin (BNB) and Solana (SOL), are also fast chasing Ethereum, with their market dominance increasing 40% and 344%, respectively, since 2023.

Ethereum's share of TVL (total deposit assets) is also on the decline. The TVL share, which stood at 61.2% in February 2024, has recently fallen to 51.7%. On the other hand, Solana's TVL share surged 172 percent during the same period. This suggests that Ethereum's initiative within the DeFi ecosystem is weakening.

On the other hand, Bitcoin's share in the entire virtual currency market has remained steady at more than 60% this year. Greg Chipolo, global research director at New York Digital Investment Group, analyzed, "Bitcoin is clearly widening the gap with Ethereum in the virtual currency market while the traditional market is collapsing."

He then reaffirmed that Bitcoin is "the number one non-fungible hedge asset against currency depreciation," and affirmed that "there is no ‘second alternative’ at a time when the world is losing trust in legal currency and state systems."