thereum has gained massively over the past weeks, surging more than 10% in 24 hours to around $2,840. It is partially because Bitcoin's dominance seems to slide and also because of increased interest in DeFi projects. Investors are seemingly gaining confidence that Ethereum will reach former highs and even pull full advantage of the regulatory winds at its back.
Bitcoin Dominance Sinks
This means that Bitcoin's market dominance has fallen below 60%, a pivotal movement that has given way to opportunities like Ethereum to surge high in prominence. According to analytics, Bitcoin's share fell over 1.2%, reflecting a broadening trend of diversification among cryptocurrency investors.
The Ethereum-to-Bitcoin trading pair surged 5.5%, reflecting growing confidence in Ethereum as a rival cryptocurrency to Bitcoin. It marks a turning point, which may signal a shift in market dynamics and provide an avenue for better gains by altcoins.
Growing Interest in Decentralized Finance
The surge in price action for Ethereum has been complemented by strong DeFi action with its relative increase of more than 13.5%. This indicates that Dapps are gaining steam because Ethereum is uniquely positioned with its support for smart contracts.
Industry trackers say this renewed interest in DeFi is in line with expectations of a crypto-friendly regulatory regime, particularly since the U.S. presidential election just a fortnight ago. According to analysts, the new administration's presumed deregulatory stance should ramp up innovation in the DeFi space, driving Ethereum's price even higher.
Record Inflows into Spot Ether ETFs
Recent reports have shown that U.S. spot Ether ETF inflows have started to see quite a remarkable uptick, having reached their highest inflows in six weeks. Nine newly launched spot Ether ETFs had a collective net inflow of $52.3 million on November 6.
Most interestingly, Fidelity's Ethereum Fund, FETH, took the lion's share of this sum with $26.9 million, proof of great institutional interest. While this trend is positive, the overall net aggregate across all Ether products still lies in negative territory at $490 million, heavily dented by significant losses in the high-fee Ethereum Trust, ETHE from Grayscale.
The total market capitalization of the entire cryptocurrency market responds to these developments, reaching more than $2.64 trillion lately. The traction is also giving more steam to the action across markets, as Bitcoin recently outpaced its all-time high above $76,000. The momentum in Ethereum runs in tandem with institutional investments like the one into the Grayscale Ethereum Trust for $10 million by Michigan State Retirement Fund, where belief in the long-term potential of Ethereum is thrown onto the scales.
