Ethereum: Is the king of altcoins eyeing Bitcoin’s throne post the Merge

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The Merge has final­ly launched on Ethereum [ETH] and noth­ing has been the same ever since. What had hoped to be a major bull­ish event has turned into a short-term bea­con of pain for ETH traders.

How­ev­er, the post-Merge cryp­to mar­ket is wit­ness­ing a strange trend rever­sal as Ethereum‘s trad­ing vol­ume share hit an all-time high. This pat­tern put an end to Bit­coin [BTC]‘s trad­ing dom­i­nance and even raised ques­tions of its favouritism in the cryp­to community.

ETH reg­is­tered near­ly 2/3rd of the mar­ket share of trad­ing vol­ume dur­ing last week’s sell-off. The cryp­to mar­ket also observed this shift in nar­ra­tive for some time as ETH tripled its mar­ket share since 2020. This sug­gest­ed a “durable shift” in mar­ket struc­ture away from BTC.

Source: Kaiko Research

A new chapter begins

The post-Merge cryp­to mar­kets have been in a free fall as major assets crip­pled since last week. Bit­coin fell by over 16% while ETH slumped by a quar­ter of its val­ue dur­ing the same period.

Ethereum-forked tokens, such as ETHW and ETC also wit­nessed dra­mat­ic drops since then. At the time of writ­ing, they could also be con­sid­ered as the week’s worst per­form­ers. Thus, indi­cat­ing the strug­gle of Ethereum min­ers to remain profitable.

Source: Kaiko Research

The inter­est in the Ethereum Merge increased stETH quan­ti­ties through­out the third quar­ter but the trend seems to be on a down­trend. Accord­ing to Kaiko Research, the dis­count on staked ETH tokens rel­a­tive to spot ETH has nar­rowed to its low­est lev­els since May.

Lido Finance ini­ti­at­ed a dis­count on stETH dis­count from 4% to just 1%. This has been sup­port­ed by increas­ing liq­uid­i­ty in Curve’s stETH pool, which is the largest sec­ondary mar­ket for staked ETH. cbETH and bETH mar­kets also wit­nessed strong buy pres­sure imme­di­ate­ly after the Merge.

Source: Kaiko Research

How­ev­er, both BTC and ETH prices showed some mild recov­ery since their recent lows. BTC surged by 5% and was trad­ing above $19,400 at press time. Mean­while, ETH gained 5.7% on the dai­ly chart and was exchang­ing hands above $1,360 accord­ing to CoinMarketCap.

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