Ethereum’s Market Share Hits Historic Low: Is a Price Drop Imminent?

Ethereum’s market share has declined to a historic low of 7.18%, leading to forecasts of a potential price drop to $1,100 due to bearish trends. Rivals like XRP and Solana have seen significant market growth, while Ethereum faces challenges from diminished institutional demand and competition. Ongoing criticisms question its model, complicating its future prospects.

Ethereum’s position in the cryptocurrency market has notably weakened, plummeting to a dominion of 7.18%, near its historic low of 7.09% recorded in September 2019. This decline signifies a substantial loss of influence compared to its competitors, with analysts indicating that Ethereum must maintain its current standings to potentially recover in the subsequent months.

Key rivals have demonstrated considerable market share growth. XRP has increased its share by over 200% since 2019, while Solana has gained 344% in dominance since the beginning of 2023. BNB Chain is also a notable contender, showcasing a 40% increase in market share.

Technical analysis shows a bearish flag pattern developing in Ethereum’s price. If the price closes beneath $1,600, it could validate a downward trend, with forecasts suggesting a drop to $1,100—a decrease of 33%. The Relative Strength Index (RSI) remains below 50, supporting the bearish sentiment.

Several elements contribute to Ethereum’s current vulnerability, including weak institutional demand, negative ETF flows, a sluggish derivatives market, and escalating competition from alternative blockchains. The total value locked (TVL) in Ethereum has also fallen significantly, declining from 61.2% in February 2024 to 51.7% presently.

This downturn is exacerbated by broader critiques concerning Ethereum’s model, coupled with adverse remarks from key figures in the crypto space. Detractors like Peter Brandt have labelled ETH as “worthless trash,” casting doubt on its future viability and strategic choices that may have led to the platform’s declining stature.