Weekly Market Wrap: Bitcoin Dominance Surges as Market Eyes $47K, Altcoins Follow Suit
In recent days, Bitcoin (BTC) has experienced a notable surge in dominance, climbing by nearly 1% within a mere two-day span. This rise coincides with a substantial uptick in Bitcoin's price, which has broken free from a prolonged period of stagnation, catapulting by almost $4,000 in just a short timeframe.
The recent bullish momentum in Bitcoin comes after a period of consolidation following its recovery to almost $44,000. Despite several attempts to breach this level, Bitcoin remained largely subdued, hovering around $43,000 the previous week. However, a significant shift occurred last Thursday when Bitcoin surged past $45,000 for the first time since the retracements observed after the approval of spot ETFs in January.
Notably, Bitcoin's market capitalization has surged past the $910 billion mark, underscoring its growing significance within the broader cryptocurrency market. Moreover, Bitcoin's dominance over altcoins has increased by nearly 1%, reaching 52% on CoinMarketCap. This uptick in dominance suggests a renewed investor interest in Bitcoin amid the broader market rally.
While Bitcoin's ascent has captured the spotlight, many altcoins have also witnessed modest gains, albeit in a more subdued manner compared to Bitcoin's surge. Ether (ETH), for instance, edged closer to the $2,500 mark following a 2% daily increase, while Binance Coin (BNB) has surged by a similar percentage, trading at just over $320.
Several altcoins, including XRP, AVAX, DOGE, TRX, DOT, and MATIC, have also recorded marginal gains. However, it's worth noting that Solana (SOL) and Cardano (ADA) have emerged as frontrunners among larger-cap altcoins, with SOL witnessing a 4% increase, trading at $105, and ADA adding 3% of value, hovering close to $0.55.
In tandem with the uptrend in Bitcoin and select altcoins, the total cryptocurrency market capitalization has continued to surge, reaching $1.760 trillion. This notable increase represents a significant overnight growth of $50 billion and highlights the resilience and robustness of the broader cryptocurrency market.
BlackRock's Bitcoin ETF Among Top 5 for 2024 Inflows
BlackRock's entry into the Bitcoin ETF arena has made a significant splash, with its iShares Bitcoin Trust (IBIT) quickly rising to become one of the top five exchange-traded funds (ETFs) in terms of inflows for 2024. Just 17 days post-launch, IBIT has attracted $3.2 billion in inflows, trailing only behind massive index ETFs like iShares Core S&P 500 ETF (IVV) and Vanguard 500 Index Fund ETF (VOO). Fidelity's Wise Origin Bitcoin Fund (FBTC) also made its mark, securing the eighth spot with $2.7 billion in inflows. Despite a recent slowdown in overall investment into new spot bitcoin ETFs, both BlackRock's IBIT and Fidelity's FBTC have maintained positive flows since their debut, showcasing sustained investor interest in cryptocurrency ETFs.
Ethereum's Dencun Upgrade Set to Revolutionize Transaction Speed and Cost
Ethereum's awaited Dencun upgrade, slated for deployment around March 13, promises significant improvements in transaction speed and affordability on the network's layer-2 solutions. The focal point of this upgrade, proto-danksharding (EIP-4844), is a precursor to danksharding, aiming to enhance data verification efficiency on Ethereum's layer-2 networks by sampling and verifying smaller data segments. By utilizing "blobs" to temporarily store data off-chain, Dencun seeks to alleviate storage and processing costs, addressing Ethereum's longstanding challenges of high gas fees and slow transaction speeds. This upgrade marks a pivotal moment for Ethereum, potentially enabling the ecosystem to handle over 100,000 transactions per second in the future.
XBO Featured Coin of the Week —– MATIC
MATIC serves as the native digital currency of the Polygon blockchain, which aims to expedite and reduce the cost of transactions for decentralized applications (dApps) operating on the Ethereum network. Employing a Layer-2 scaling solution, MATIC facilitates swifter and more economical transactions while mitigating gas fees. It also furnishes developers with a straightforward Software Development Kit (SDK) to craft their own dApps.
Introduced in 2019 by three co-founders—Jaynti Kanani, Sandeep Nailwal, and Anurag Arjun—MATIC's mainnet became operational in May 2021, marking a significant milestone for the project. Since then, MATIC has garnered rapid acclaim, witnessing a surge in its market capitalization to become one of the cryptocurrency market's leading contenders.
A noteworthy attribute of MATIC is its capacity to foster interoperability across various blockchains. Achieved through "Polygon bridges," these bridges facilitate asset transfers between the Ethereum network and alternative blockchains, streamlining the development of cross-chain applications that can interact seamlessly with diverse blockchain networks.
Furthermore, MATIC has forged strategic partnerships with prominent entities in the blockchain sphere, including Chainlink and Aave, bolstering adoption and amplifying the platform's value.
Beyond its application in dApps and blockchain interoperability, MATIC can also be utilized for staking purposes. Staking entails holding the cryptocurrency in a designated wallet to bolster the network and garner rewards. MATIC's staking mechanism is designed to be user-friendly and inclusive, featuring minimal entry barriers and promising substantial rewards.
Buy, sell, and swap MATIC securely at XBO.com.
Disclaimer: Our content does not constitute financial advice. It is only intended for informational and educational purposes.
