The second leading digital currency is taking large strides that might counter the Bitcoin dominance in the cryptocurrency market. As the much-anticipated upgrade to a staking protocol draws near, lots of funds have been deposited. Activities in the blockchain have also surged as more of its DeFi projects get discovered and subsequently adopted.
Ethereum supply in exchanges has hit a low level last seen in 2020. The current reduction is a result of investors staking in the ETH2.0 deposit contract. The locked stakes have now surpassed 6.11 million ETH.
Wu Blockchain reposted charts from Cryptoquant which indicated the exchange supply being at a low of over 19.8 million today. The retracted coins are believed to be staked in the ETH2.0 deposit contract or DeFi programs hosted on the network.
In light of this, Bitcoin might lose its market dominance to Ethereum. Celsius network assented to this possibility as ETH boasts of larger dollar holdings in its community. Currently, Bitcoin’s market dominance settles above 44 percent, and Ethereum’s rapidly spiking at 18.5 percent.
Ethereum Based DeFi Projects Bask in Newly Found Attention
The wobbly situation of Bitcoin is not deterring ERC-20 projects from gaining needed attention. Several projects in the Ethereum ecosystem are now receiving massive institutional attention like never before.
ERC-20 DeFi projects are gradually developing a reputation of being premium and a first choice in comparison to other projects on hosting blockchains. Uniswap (UNI), SNX, AAVE, and COMP are some of the Ethereum-based tokens that are gradually obtaining high interest.
As Ethereum gears to launch into a proof-of-stake consensus, the network could enjoy a lot more activity. The major deterrent factors of the network is its scalability and high gas fees. The incoming staking protocol and the London hard fork upgrade would settle these issues and see to a thriving network.