Glassnode Week 19 on-chain report published yesterday presented a deeper insight into the crypto markets while touching on Ethereum. Per the report, miners have continued Bitcoin accumulation indicating strong bullishness.
However, the market share of Bitcoin in the crypto market has continued to slide lower and is currently sitting below 43%. One obvious reason could be the recent increasing institutional interest and the growth of altcoins. JP Morgan analysts reported earlier that “investors are starting to “get comfortable with altcoins.”
This notion was reinforced by the report, stating that older BTC being spent currently suggests capital rotation in the crypto market. Traders are starting to take advantage of altcoins’ volatility as Bitcoin continues to consolidate, says the report.
Crypto Market Hints of a Sentiment Shift to Ethereum
The report shows that Ethereum and Dogecoin have been the foremost recipients of this capital rotation. This could be seen in their smashing performances for the last couple of weeks. Ethereum is up by more than 20% over the past week, reaching an all-time high of $4,197 on May 10.
Contrasting the UTXOs (Unspent Transaction Output) of older Bitcoin, between 6 months and 3 years, being spent and Ethereum price, there’s a possible correlation. While older Bitcoin that have been held for longer periods were released back into circulation, the price of almost ETH doubled in the same period.
There is also a noticeable spike in the on-chain activity of Ethereum over the past weeks. Other on-chain metrics have surged too, including the number of smart contract calls, Uniswap transactions and many more. Furthermore, the daily transactions on the network soared by nearly 23% recently to an ATH of 1.63 million.
However, ETH price is down by 3% after sliding from an intraday high of $4,185. As of this writing, Ethereum was exchanging hands at $4,030. Per Tradingview’s data, the dominance of Ethereum has soared above 19% compared to the 9% in January.