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According to coinmarketcap, the dominant position of bitcoin (BTC. D: the market value of bitcoin relative to all crypto assets) fell below 40% for the second time since 2018 and was at an eight month low. The balance of Ethereum miners (that is, the number of eth held by miners) hit a record high.

This move is in sharp contrast to the crypto bear market that began in 2018, when bitcoin's dominance rose to more than 70% in September 2019 amid the overall market decline as the price of alternative crypto assets plummeted.

Promotion of Ethereum merger

Ethereum has become a driving force for BTC D is the main force near the historical low. After climbing from a low of less than 8% in the fourth quarter of 2019, as of August 30, ETH's dominant position (ETH. D) was 20%.

ETH. D did not collapse with the bear market - on the contrary, it has remained at a roughly 20% level since November 2021, while BTC D has been generally stable since May 2021.

The ETH / BTC ratio, that is, the price of eth to BTC, is largely different from that of eth D chart is similar. The two major cryptocurrencies account for 60% of the market - the relationship between Eth and BTC largely determines its dominant position in the whole crypto market.

According to the defiant terminal, ETH fell 59% last year. Nevertheless, it still maintained a dominant position of about 20%, because all mainstream tokens were "blood washed" during this period.

The financing interest rate is at a 14 month low

According to a report by cryptocurrency trader maartunn on August 28, ETH's financing interest rate also reached a 14 month low.

When the financing interest rate of asset perpetual futures is negative, it indicates that there are too many sellers and traders make profits by going long. As maartunn pointed out, the last time the financing interest rate of eth was so low was in July 2021, and soon after that, the asset rebounded in a short squeeze.

According to oklink data, the balance of miners, that is, the number of eth held by miners, also increased from 114255 last year to 261849, more than doubling. This may indicate that miners were bullish before the merger because they chose to hold eth block rewards instead of selling tokens.

It is only a week away from the first stage of the highly anticipated Ethereum upgrade, and expectations seem to be driving the price trend of eth, because traders also made bullish bets through derivatives.

Chain data shows that BTC financing interest rate is still negative, indicating that bearish investors are paying bullish traders the right to short BTC. In the past 12 days, the fund interest rate was negative in 11 days, indicating that bearish sentiment is dominant at present.