Quant Suggests Bitcoin Will Be Back In The Driver Seat After Ethereum Merge

Quantum suggested that Bitcoin will once again become the driving force in the crypto market once the Ethereum consolidation hype is over.

It appears that Bitcoin’s share of cryptocurrency trading volume has exceeded the value of Ethereum

As explained by an analyst at CryptoQuant MailThere are some indications that Bitcoin is overtaking Ethereum once again to be the dominant force in the market.

The relevant indicator here is “dominance by volume,” which measures what portion of the total crypto trading volume each coin contributes to the sector.

The “Trading volume“It is a metric that measures the total amount of cryptocurrencies involved in transactions in the spot markets.

Now, here’s a chart showing the trend in volume dominance for Bitcoin and Ethereum:

Bitcoin vs Ethereum trading volume

The value of the metric for BTC seems to have crossed over that of ETH in recent days | Source: CryptoQuant

As you can see in the chart above, Bitcoin’s share of trading volume was significantly higher than Ethereum’s during the beginning of July.

However, towards the middle of that month, ETH started to slowly rise and outpace the volumes of Bitcoin.

Related reading: Bitcoin Taker Buy/Sell Ratio Reaches 636-Day High

In August, ETH remained dominant in terms of volume over BTC for the entire month, with the exception of some recent short rallies.

This lasted until September, until just a few days ago. The reason why Ethereum led a bear market for about two months was the hype that was being created ahead POS integration.

Quantum believes that once the merger is completed in about two days, this narrative that has kept the cryptocurrency volumes going will disappear.

Related reading: Chiliz Coin and Big Eyes: Two Ethereum-Based Cryptocurrencies That Might Take Down Binance Crypto Project

About three days ago, the share of BTC in trading volume exceeded that of Ethereum and has since remained high. The analyst notes that this is one of the early signs of a shift in investor behavior around the launch of the merger.

BTC surpassing volumes on exchanges now means that soon after the consolidation, Bitcoin will return to being the main driving force in the crypto market.

BTC price

At the time of writing this report, Bitcoin price It is floating around $22.2K, up 13% in the past seven days. Over the past month, the cryptocurrency has lost 7% of its value.

The chart below shows the currency price trend over the past five days.

Bitcoin price chart

Looks like the value of the crypto has been observing some upwards momentum during the last few days | Source: BTCUSD on TradingView
Featured image from Peio Bty on Unsplash.com, charts from TradingView.com, CryptoQuant.com

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