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Digital assets like Bitcoin and Ethereum have seen a dramatic increase in adoption and user base in recent months. However, September did not contribute much to this growth. In fact, the past month has shattered some trends and made history in other ways.
Bitcoin’s dominance has plummeted and altcoin favoritism has increased. Ergo, the question – What can we expect from the market in the fourth quarter.
The fall of digital assets
Assets under management (AUM) in September did not see the same increase as in August due to the hyper-volatile market last month. The overall stock fell by 6.3%, despite the fact that in August it broke the downtrend and rose by 57.3%.
Decline in assets under management | Source: CryptoComparer
A significant effect of market volatility was also seen on the assets managed by Grayscale. Despite rising more than 13% in August, GBTC, along with all other assets, were trading at a discount last month.
The resulting uncertainty continued to drive trade swings, with the GBTC falling 16% in September.
GBTC movement | Source: TradingView – AMBCrypto
However, even in a slightly negative month, Ethereum’s dominance in the exchange traded commodity (ETP) market continues to grow. September witnessed a historic moment as ETH first beat BTC to become the most traded commodity.
And, while Bitcoin’s AUM dominance fell to its lowest level this year, Ethereum’s dominance reached an all-time high. This, despite a 3% drop this month.
Will Bitcoin, Ethereum, or something else rule the fourth quarter?
Due to the anticipation of the start of the fourth quarter, this month broke the exit trend for the first time in 3 months. Admissions this month averaged $ 74 million, with Solana becoming the second largest asset in terms of admissions.
Average collection per asset | Source: CryptoComparer
So Ethereum and altcoins like Solana and Cardano could rise this time around. ETH has grown exponentially since the last quarter, with its market capitalization increasing by 818%. This was much higher than the figures for the previous year (125%).
Hiking can be primarily associated with the beginning of its transition to Proof of Stake (POS). Now that POS is here, it could see increased participation and investment in the future.
Ethereum market capitalization increase | Source: TradingView – AMBCrypto
In addition, Grayscale announced this year Cardano as its third largest holdings. With the introduction of smart contracts last month, he can see more optimism from investors.
Plus, since Cardano’s active addresses have grown over the same time frame as Ethereum’s depreciation, who knows if it might rise even more than ETH.
Cardano active addresses greater than Ethereum’s | Source: grayscale
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