Ethereum (ETH), once the undisputed leader of the altcoin space, is facing mounting pressure as its market dominance dips dangerously close to historic lows. On April 9, ETH’s dominance of the overall crypto market capitalization dropped to 7.18%, just a fraction above its all-time low of 7.09% recorded in September 2019, according to data from Cointelegraph Markets Pro and TradingView.
Crypto analyst Rekt Capital sounded the alarm in an April 13 post on X, noting that Ethereum is on the verge of registering new dominance lows unless it maintains key support levels. “Ethereum Dominance needs to hold this green area to position itself to become more market-dominant over the coming months,” he wrote.
The sharp decline comes as Ethereum loses ground to rival layer-1 platforms. XRP has surged in dominance by over 200% since 2019, while Solana and BNB have posted 344% and 40% gains, respectively, since 2023. Ethereum, meanwhile, grapples with declining institutional interest, evidenced by negative ETF flows, and a lackluster derivatives market.
Total value locked (TVL) metrics further highlight Ethereum’s struggle to maintain its DeFi stronghold. While still leading with 51.7% dominance, Ethereum’s TVL share has dropped significantly from 61.2% in February 2024. In contrast, Solana’s TVL share has soared by 172% in the same period, signaling shifting user and developer preference.
Technically, ETH’s chart is also raising red flags. A potential bear flag pattern forming on the daily chart points to a deeper correction. Should ETH close below $1,600, it could confirm the bearish setup, with a possible price target of $1,100—a 33% decline from current levels.
The RSI remains below 50, suggesting momentum is still skewed to the downside. As analysts warn of a potential bottom near $1,000, Ethereum’s next moves could be pivotal in determining whether it reclaims dominance—or cedes further ground to faster-growing rivals.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
Also Read: Galaxy Digital Sells $40M in Ethereum as ETH Price Dips — Analysts Predict Key Rebound Zone
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
