Bitcoin Dominance Reaches 3-Year High in Q3 Crypto Market Report

Bitcoin’s Performance in Global Markets

The latest CoinGecko report for Q3 highlighted intriguing trends in the crypto market. Bitcoin’s market dominance has soared to over 58%, marking its highest level in three years. Despite this, the overall market cap for cryptocurrencies experienced a slight decline, with Bitcoin underperforming assets like gold and various treasury bonds. Notably, government policies in countries such as the US, Japan, and China significantly influenced market movements during the quarter.

US policy decisions, including rate cuts, provided a boost for Bitcoin, while Japan’s potential tax cuts also played a role. Moreover, stimulus announcements in China contributed to market growth, with ETF performance in the region showing significant inflows.

Although Bitcoin’s price remained relatively stable, US Spot Bitcoin ETFs saw increased net inflows in Q3 compared to Q2, leading to a 13.2% growth in Assets Under Management (AUM).

Ethereum’s Market Landscape

Ethereum faced challenges in Q3 as it lost market share to Bitcoin. However, the report highlighted a 17.2% increase in Layer-2 transactions on the Ethereum network, with a significant portion coming from Base. Base’s emergence has impacted Ethereum’s dominance in decentralized exchange (DEX) trading, with Solana also gaining ground due to its technical advantages.

Despite being the dominant chain for DEX trading, Ethereum’s market share dipped below 40% consistently in Q3. Solana’s popularity, driven by meme coins, and Base’s continued growth were notable trends during the quarter.

Overall, both Bitcoin and Ethereum faced mixed outcomes in Q3, with the crypto market experiencing slight contraction. Bitcoin’s performance was influenced by various external factors, while Ethereum faced stiff competition from emerging blockchain solutions.