Bitcoin Gains Momentum Amidst a Slump in Ether and DeFi Tokens

Bitcoin takes the limelight with its market dominance reaching peaks unseen since April 2021.

Bitcoin (BTC) showcased superior performance as Ethereum’s ether (ETH) and decentralized finance (DeFi) tokens faced challenges this Tuesday. BTC experienced a dip to $28,100 during the day’s early hours, only to rebound near $28,500, marking a minor increase over 24 hours.

Conversely, ETH’s value diminished, falling by 1.8% to around $1,560, recording its lowest BTC-relative value in 15 months. CoinDesk Market Index, representing the broader crypto market’s movement, indicated a slight 0.6% decline.

The DeFi sector saw the most significant downturn, with CoinDesk’s DeFi Index (DCF) dropping 3.7%. Notably, UniSwap’s UNI token faced a steep 7% decline after Uniswap Labs decided to introduce a 0.15% fee on specific trades from Tuesday.

The Sui blockchain’s token (SUI) also experienced a sharp 7.6% drop following concerns from the South Korean Financial Supervisory Service over potential token supply manipulation. However, the Sui Foundation refuted these allegations, deeming them “baseless.”

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Bitcoin’s Ascending Market Presence

Bitcoin’s consistent performance pushed its overall crypto market dominance, termed as the Bitcoin Dominance Rate, to a striking 52%—a zenith since April 2021, as per TradingView data. Investment advisory ByteTree believes this dominance could climb even higher. The anticipation surrounding the potential approval of a Bitcoin spot ETF and the forthcoming quadrennial halving of Bitcoin next year, generally a positive indicator for the cryptocurrency, are bolstering this sentiment.

ByteTree’s Monday report conveyed optimism, stating, “Although crypto appears less volatile recently, Bitcoin’s influence seems poised to grow.”