As of October 29, Bitcoin's market performance remains robust, with the price around $71,299, marking a 5.13% increase in the past day and pushing Bitcoin's market cap to $1.41 trillion. Bitcoin's market dominance is approximately 58.6%, fueled by steady inflows into spot Bitcoin ETFs and heightened bullish sentiment ahead of the upcoming U.S. election.
The Fear and Greed Index currently reads 72, placing it in the "Greedy" zone—an indicator of market optimism and investor confidence as prices remain strong. In the futures market, the long-short ratio reflects a predominantly bullish outlook, with a majority of traders favoring long positions. This trend aligns with substantial institutional inflows into Bitcoin-focused financial products, collectively reinforcing Bitcoin’s positive momentum as the final U.S. presidential election nears on November 5, 2024.
Quick Take
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Forbes: Central banks worldwide are increasing their research on Bitcoin.
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Robinhood launches U.S. presidential election derivatives trading.
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Solana’s market cap surpasses PayPal, Reaches $83.63 Billion.
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Coinbase report: Solana network activity is mainly concentrated in U.S. time zones, with DEX-related activities accounting for 75%-90% of total successful transaction fees.
Crypto Fear & Greed Index | Source: Alternative.me
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Top 24-Hour Performers
Read More: Tether Transparency, Arkham Expands to Solana, and Vitalik's Ethereum Vision of “the Purge”: Oct 28
Bitcoin's Market Dominance Nearing 60%
BTC/USDT price chart | Source: KuCoin
Bitcoin nears 60% market dominance, signaling a shift as investors prioritize its stability over altcoins. With a 10% rise in dominance this month, Bitcoin emerges as a "flight to quality" asset in uncertain markets, while altcoins continue to show lackluster market performance compared to the leading coin.
Last year, Bitcoin's market share dropped below 40%. It hit a low during a prolonged bear market with declining values and shaken confidence. Since then, Bitcoin steadily regained strength. Growing institutional interest, regulatory developments, and its reputation as a hedge against economic uncertainty drove this trend. Experts predict more growth in Bitcoin's dominance.
Bitcoin's recent surge is driven by a combination of technical momentum and substantial capital inflows, reinforcing its bullish outlook. For the week ending Oct. 25, Bitcoin funds recorded $920 million in inflows, pushing year-to-date inflows to an impressive $25.4 billion, as reported by CoinShares. This momentum followed an even larger wave of inflows into the 11 U.S. spot Bitcoin ETFs, which accumulated over $2.1 billion in net inflows just a week earlier, according to Farside Investors.
Additionally, Bitcoin's chart saw a significant technical event known as a “golden cross,” where its 50-day moving average surpassed the 200-day moving average. This bullish signal often indicates potential for a sustained price breakthrough, and with robust inflows and positive market sentiment, Bitcoin appears well-positioned for continued growth.
Solana's Flips Ethereum in Daily Transaction Fees
Solana recently overtook Ethereum in daily transaction fees, generating $2.54 million in 24 hours, surpassing Ethereum’s $2.07 million . This surge places Solana among the top fee-generating blockchains and shows growing market activity. Increased activity on Raydium, a major decentralized exchange on Solana, drove the spike in fees. Raydium's fast transactions and lower costs attracted more traders and liquidity, boosting Solana's volume.
Protocols by 24 hour fees. Source: DefiLlama
The rise in Solana's fees shows its scalability and ability to handle demand without slowdowns or cost spikes. This makes Solana appealing for DeFi projects, NFTs, and other blockchain applications needing high throughput and efficiency.
While Solana's gains impress, Ethereum still leads in overall fee generation. In the past month, Ethereum generated $134.6 million in fees. Its established ecosystem, strong developer community, and wide range of applications keep Ethereum as the leading blockchain. However, Solana's rapid growth suggests it could play a more important role in the future as projects seek alternatives to Ethereum's high fees and scalability issues.
Read More: X Empire Token Launches on KuCoin, Solana Network's Daily Fees Revenue Reaches New Highs: Oct 25
Base Leads in Stablecoin Volume
Base, an Ethereum layer-2 network, recently led the market in stablecoin volume. On October 26, Base accounted for 30% of all stablecoin transactions, surpassing other major blockchains. This milestone and record transaction count highlight Base's growing influence and potential as a key player in the stablecoin market.
Stablecoins are essential to the crypto market. They bridge traditional and decentralized finance and provide a stable medium of exchange. Base's leadership in stablecoin volume shows that layer-2 solutions are crucial for scaling Ethereum's capabilities and solving issues like high fees and congestion. By offering faster and cheaper transactions, Base positions itself as a valuable platform for stablecoin users seeking efficiency.
After Base's surge in stablecoin volume, Solana and Ethereum also showed strong activity. Solana captured 25% and Ethereum took 20%. The competition to attract stablecoin transactions shows the growing demand for efficient blockchain solutions. Circle CEO Jeremy Allaire suggested that if this trend continues, USDC could reach an annual transaction rate of $6.6 trillion on Base alone, highlighting its growing role in the financial system.
Read More: Top Types of Stablecoins You Need to Know in 2024
Conclusion
Despite setbacks, such as a dip following news of a Tether investigation, Bitcoin has demonstrated resilience. Meanwhile, networks like Solana and Base highlight continued growth potential for altcoins, particularly in DeFi, NFTs, and stablecoin transactions. With heightened volatility likely as the U.S. election on November 5 approaches, the crypto market may see dynamic shifts in the coming weeks.
