How The Ethereum Rally Is Propping Up Large Cap Cryptocurrencies

Data shows the large cap cryptos have been outperforming the others this month so far, thanks to Ethereum’s latest rally.

Ethereum’s Dominance Has Gone Up Over 3.4% During The Past Week

As per the latest weekly report from Arcane Research, the large cap index has observed 28% gains in the month of June so far.

“Cap” here refers to the USD capitalization. Based on the market cap of the various coins in the crypto market, each one can be put into three main “indexes.”

These major categories are the large cap index, the mid cap index, and the small cap index. Ethereum being the 2nd largest crypto in the market obviously belongs to the first class.

The benefit of grouping the different cryptos in the market is that the average performance of the the large, medium, and small coins can easily be tracked this way.

Related Reading | Ethereum 2.0 Weekly Deposits Have Slumped Down To Lowest Ever

Now, here is a chart that shows the trend in the performance of the indexes and how they compare against Bitcoin over the month so far:

Ethereum And Cap Index Performance

Looks like all the cap-weighted indexes have Bitcoin beat in this month | Source: Arcane Research's The Weekly Update - Week 28, 2022

As you can see in the above graph, the month-to-date return of the large cap index has been the biggest so far, currently standing at a 28% gain.

The recent Ethereum momentum has played a major part in the index observing such returns. Since 1st July, ETH has increased in value by more than 50%.

Related Reading | Bitcoin Taker Buy/Sell Ratio Shows Green Signal

The mid cap and small cap altcoins have also seen strong returns this month as both the indexes have noticed profits of 19%.

Unlike Ethereum, Bitcoin hasn’t had an exceptional time so far, with the crypto sitting at positive returns of about 12% at the moment.

This also means that BTC has been outperformed by the rest of the market. This can be seen in the market cap dominance of the coin registering a decline during the past week:

Bitcoin vs Ethereum Market Cap

The market share of Bitcoin has taken a 1.6% hit in the last seven days | Source: Arcane Research's The Weekly Update - Week 28, 2022

Ethereum’s percentage of the total cryptocurrency market cap, on the other hand, has improved by 3.4% during the last week.

The stablecoins have also lost some ground in this period, which makes sense as money is being rotated into ETH and other altcoins, fueling their latest uptrends.

ETH Price

At the time of writing, Ethereum’s price floats around $1.5k, up 45% in the past week.

Ethereum Price Chart

The value of the crypto seems to have surged up over the last few days | Source: ETHUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Arcane Research

by Hououin Kyouma via Bitcoinist.com

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