Booming DeFi and NFT markets and a record-setting Ether have contributed to Bitcoin's bad week.
There’s no threat of Bitcoin losing its position as a market leader anytime soon, however, as Ether has a market share of just 14.5% at present.
Historically, Bitcoin falling below 50% market dominance has marked the start of an altseason.
"Bitcoin dominance fell significantly as retail and crypto-native institutional investors turned to alts attracted by the prospect of massively outsized returns. Similarly, NFTs surged, achieving mainstream adoption faster than anyone in the space thought possible. While I remain skeptical that the NFT wave will continue at this pace, I think market conditions remain extremely bullish for altcoins relative to Bitcoin as money continues to pour into crypto in record amounts."
A Bull Changes Direction
Ether set a new all-time high today, breaking past $2,600 for the first time and reaching a new record of $2,641.09. Pal said:
"When you price anything up in DeFi, NFT, community tokens or even metaverse worlds, everything is basically priced in ETH, including designers time etc."