- Ethereum hit a yearly high over the weekend
- Bitcoin has started the week with a strong move
- Alt coin market cap closing in on key level of $120 billion
Ethereum hit a yearly high over the weekend as alt season continued to impress, boosted again by DeFi coins. However, Bitcoin has started the week with a move above $10,000, suggesting that it could be about to take some of the gains away from alts.
Ethereum Still Leading the Charge
Ethereum has long been touted as the coin that would lead the alt coin charge, buoyed by the imminent arrival of Ethereum 2.0 and the explosion of the DeFi craze, and this has indeed proved to be the case: the coin has rallied impressively from $233 to $329 in the space of one week, aided by Bitcoin’s relative stagnation:
Ethereum’s performance has made it the talk of crypto Twitter, with the space now awash with price predictions:
— Arthur Hayes (@CryptoHayes) July 26, 2020
ETH is money
When ETH is $1k will you believe me?
Or are you gonna be one of the ones that doesn’t figure it out til $10k?
— Ryan Sean Adams – rsa.eth 🏴 (@RyanSAdams) July 25, 2020
Going a little higher than the plan initially was, a month ago.
But we’re doing fine.
Might be on the resistance at the $308 level.
But that’s basically final hurdle before $400+, to me. pic.twitter.com/X3dKh1ncCX
— Crypto Michaël (@CryptoMichNL) July 25, 2020
The DeFi movement has undoubtedly been the catalyst for this move, although the positivity on the launch of Ethereum 2.0 is also helping. DeFi coins themselves continue to outperform the rest of the market, with YFI doing an incredible 500% in the week since launching on Poloniex and MTA doing over 100% on the same exchange.
Equally, the alt coin market cap is continuing to march upward as expected. With our initial $92 billion target now well and truly disposed of, the next target is $116-$120 billion. This would take us back to similar levels to last June and prior to that August 2018 and would usher in the potential for a progression from alt season to silly season, where three-figure gains are the norm:
This is by no means guaranteed, and it never hurts to take profit, but the trend is most certainly up right now, with Ethereum indeed looking good to run to at least $400 in the coming weeks.
Bitcoin Dominance Continues to Drop
The rise of the alt market cap is echoed in the Bitcoin dominance level, which has fallen from 66% to 61.5% within a month. As our in-house analyst Will Gambit posited at the start of June, a downward trend in Bitcoin dominance has been in place for some time and so it has proved, with alts as we know rallying hugely in the past two months.
However, Bitcoin has started the week by crossing $10,000, perhaps buoyed by the recent performance of silver and gold, the latter of which just hit its all time high. In doing so it crossed a resistance line first established in December 2017 at the top of its all bull run:
This jump has led to a sharp rebound in Bitcoin dominance:
Bitcoin’s move here illustrates the power it has over alt coins and is a reminder that alt gains can be decimated by a Bitcoin run, and there is only so long that Bitcoin can be pushed down for before, like alts, it springs back up again.