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Ethereum Struggles Amid Large-Cap Cryptocurrencie Market

Despite the recent market revival and the green tide of several large-cap cryptocurrencies, Ethereum stands out as a laggard, struggling to sustain its buoyancy. According to Santiment’s data, frustrated Ether traders have been watching other notable tokens shine while Ethereum’s market cap has dipped by -4.7% in the past month, contrasting sharply with the thriving XRP (+36.9%) and SOL (+32.2%).

Cryptocurrencies have been riding the wave of market optimism in recent times. Bitcoin, the bellwether cryptocurrency, has been at the forefront of this resurgence, backed by an increased enthusiasm in the broader market. The positive inflation report, coupled with the political stability ensuing Trump’s swearing-in, has acted as catalysts, propelling most significant digital assets to renewed strength.

Bitcoin, in particular, has seen a 9.7% surge in its price over the last 30 days, trading at a robust $105,110 at the time of writing. With a 24-hour volume of $70.19 billion, Bitcoin’s market cap has swelled to a staggering $2.08 trillion.

Meanwhile, Ethereum has come under the spotlight for its sustained slump. It remains the only cryptocurrency among the top 10 assets to have witnessed a prolonged downturn. Over the last 30 days, Ether has marginally dipped by 0.3% to trade at $3,321.48, a far cry from its high of $4,007.69 on December 8, 2024.

Bitcoin’s recovery has spurred significant uptrends across other large-cap cryptocurrencies. XRP and Solana, for instance, have shown an impressive monthly performance. XRP has soared by a striking 47.1% over the past 30 days to trade at $3.24, while SOL has marked a remarkable 40.3% increase over the same period, trading at $257.54.

Even Dogecoin, BNB, Cardano, and TRON, though not posting significant surges, have outperformed Ethereum in terms of monthly performance. Dogecoin, in particular, has risen by 16.4% over the last month, while BNB, Cardano, and TRON have registered rises of 4.0%, 13.3%, and 1.9% respectively.

The sluggish performance of Ethereum raises questions about the factors affecting its price. The primary contributor to Ethereum’s downturn appears to be a technical issue – an increase in inflationary supply levels. Ethereum’s network supply has been on an upward trend since April last year, and with demand remaining low, the supply of Ether has been increasing for the past 10 months.

This steady rise in supply levels and the subdued demand seem to be the crux of Ethereum’s current woes. As the market continues to consolidate, it remains to be seen how Ethereum navigates through these choppy waters.

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