Crypto Roundup — May 3rd

As the crypto market races back towards all-time highs, is shooting ahead. The second-largest crypto has gained over 20% to top $3K for the first time.

Close behind, the altcoin market has been supercharged by Ethereum’s strength. , , and are surging with double-digit weekly gains, and has jumped 17% ahead of the launch on May 5th.

Meanwhile, has moved higher to reclaim the $58K level, boosted by news that the Federal Reserve will keep near zero and continue injecting money into the economy.

This Week’s Highlights

  • Ethereum outpaces Bitcoin
  • Bitcoin dominance drops to lowest level in three years

Ethereum outpaces Bitcoin

Ethereum’s outperformance of Bitcoin over the last week reflects a similar situation over the year so far, with Ethereum boasting 300% return in the first four months of 2021, while Bitcoin gained 95%.

The surge this week could have been catalyzed by the official lending arm of the European Union — the European Investment Bank — which announced that it has issued .

Higher prices could also be supported by network growth: Daily Ethereum transactions hit a new all-time high of on April 22nd, and the in Ethereum’s decentralized finance ecosystem crossed $7B for the first time last week.

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Bitcoin dominance drops to lowest level in three years

As Ethereum surges and Bitcoin lingers below record highs, Bitcoin’ share of the market has dropped below 50% for the first time in nearly three years.

The shows that Bitcoin’s share of the cryptocurrency market is falling, while the share of Ethereum and altcoins is growing. This suggests traders are shifting focus,

pouring profits from Bitcoin into assets like and that have made double-digit gains in the past week.

When this metric dropped to similarly low levels in 2017, we subsequently saw a massive altcoin rally, followed by a further Bitcoin rally.

The week ahead

After Japanese gaming giant revealed $100M Bitcoin holdings last week, hopes are high that another large corporate crypto purchase could be discovered in the dozens of earnings expected in the week ahead, from to and . Such news could help Bitcoin steal the limelight back from Ethereum, and claw back towards its own all-time highs above $64K.

Meanwhile, Ethereum looks set to continue booming after cracking the key milestone of $3K. Wall Street strategist predicted last week that the cryptoasset could could see further gains towards $10K this year.

Written by a team of experienced financial analysts at eToro.

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results.

Employee at Delta Crypto Portfolio Tracker

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