The digital currency ecosystem is currently experiencing a bullish resurgence, a move that has pushed the broad crypto market cap back above the $2 trillion benchmarks according to data from Coingecko. While this figure is far below the $3 trillion it once printed last year, it returns hope to the broader ecosystem as a whole
The new bullish rally is spearheaded by a revival in the price of Bitcoin (BTC) which is trading at $44,313.30, up 5% in the past 24 hours at the time of writing.
The digital currency ecosystem is seeing a massive revival from the plunge it recorded last week, stirred by a bearish sentiment that engulfed all financial markets in the wake of the Russo-Ukrainian tension. With the ongoing revival across the board, it is obvious that crypto investors have developed a solid cushion from the potential risks identified earlier, and believe risky assets like cryptocurrencies are amongst the biggest bets around today.
Altcoins Bounces Contributing to the Crypto Market Cap
Just as Bitcoin moved and broke the $43,000 resistance point, altcoins have also joined the uptrend move. Ethereum (ETH) is changing hands at $3,100.23, up 7.8% in the past 24 hours. The current growth in the price of Ethereum is on track to beat the weekly high of $3,261.19.
Binance Coin (BNB) is up 8.2% to $428.55, Cardano (ADA) has maintained a steady growth above the $1 support region atop a 5.8% surge in the past 24 hours. The growth in the digital currency ecosystem is all-encompassing and almost all altcoins have ignited their revival in a bid to par off the losses accrued since the beginning of the year.
Dangers of Bitcoin Dominance
The cryptocurrency industry is highly correlated with the stock market, and every uptick or downtrend move tends to trickle down to the nascent crypto world. Within the digital currency ecosystem, however, Bitcoin’s dominance currently pegged at 40.5% tends to have an overbearing impact on the price performance of other altcoins, a situation that is not ideal for their growth.
With Bitcoin’s latest growth, the broader market saw a revival, and chances are that another slip in the price of the premier coin will also weigh in, leading to a massive reverberation across the board. This trend has been on for a while and may continue into the near future, however, the gradual reduction in Bitcoin dominance is poised to drive in more aligned price stability in the crypto ecosystem.