Ethereum: the king of altcoins that is eyeing the Bitcoin throne after the merger

Merge finally launched on Ethereum [ETH] Nothing has changed since then. What was hoped to be a major bullish event has turned into a short-term beacon of pain for Ethereum traders.

However, the post-merger cryptocurrency market is witnessing a strange reversal in trend as Ethereum trading volume has reached an all-time high. This pattern put an end to Bitcoin [BTC]s on trading and even raised questions about its preference in the cryptocurrency community.

ETH recorded nearly 2/3 of the market share of the trading volume during the sell-off last week. The cryptocurrency market also noticed this narrative change during the time that ETH tripled its market share since 2020. This indicates a “permanent shift” in the market structure away from BTC.

Source: Kaiko Research

A new chapter begins

The post-merger cryptocurrency markets have been in a free fall as major assets have been disrupted since last week. Bitcoin is down more than 16% while ETH has fallen by a quarter of its value over the same period.

Ethereum forked tokens, such as ETHW and ETC, have also experienced dramatic declines since then. At the time of writing, they could also be considered the worst performer of the week. Thus it refers to the struggle of Ethereum miners to remain profitable.

Source: Kaiko Research

Interest in the Ethereum Merge increased stETH volumes in the third quarter but the trend appears to be in a downtrend. According to Kaiko Research, the observed discount ETH tokens relative to spot ETH has shrunk to its lowest level since May.

Lido Finance has started with a stETH discount of 4% to 1% only. This was supported by increased liquidity in Curve’s stETH pool, which is the largest secondary market for ETH deposited. China and Beta markets also suffered from strong buying pressure right after the merger.

Source: Kaiko Research

However, both Bitcoin and Ethereum prices have shown some moderate recovery from recent lows. BTC is up 5% and is trading above $19,400 at press time. Meanwhile, ETH gained 5.7% on the daily chart, changing hands above $1,360 according to CoinMarketCap.

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