Ethereum's Dominance Drops to 7.3% Five-Year Low, Sparking Buy Signals
1min read Ethereum’s dominance in the cryptocurrency market has plummeted to 7.3%, marking a five-year low. This significant drop has sparked discussions among analysts about whether this decline represents a rare buying opportunity. Historically, such lows have been followed by strong rallies, making this a potential turning point for Ethereum.
On-chain data reveals that only 40% of the ETH supply is currently in profit, a stark contrast to the 97.5% recorded in early December 2024. This metric has historically signaled a market bottom, often preceding substantial price increases. Analysts like venturefounder suggest that if this percentage drops below 30%, it could indicate an even more compelling buying opportunity.
Despite the current price weakness, Ethereum continues to lead in decentralized application (DApp) revenue. The platform's DApp fee revenue surpassed $1 billion in the first quarter of 2025, underscoring its dominance in this sector. Additionally, Ethereum is preparing for major upgrades in 2025, including Pectra and Fusaka, which are expected to enhance network performance and potentially boost investor confidence.
Analysts like Rekt Capital and CryptoAnup view the current situation as a strong buy signal. Rekt Capital noted that Ethereum’s dominance has historically reversed from similar lows, suggesting that a repeat of this pattern could be imminent. CryptoAnup echoed this sentiment, pointing out that record lows in Ethereum’s dominance often mark the beginning of a new growth cycle.
However, recent data from COINOTAG indicates that ETH whale addresses are actively selling, which could exacerbate the decline in Ethereum’s price and dominance. This selling pressure, combined with the current market conditions, presents a complex picture for Ethereum’s near-term prospects.
In summary, while Ethereum’s dominance has reached a five-year low, the current market conditions and upcoming upgrades present a potential buying opportunity for strategic investors. The historical patterns and on-chain data suggest that this could be a rare window for accumulation before a potential price rally. However, the active selling by whale addresses adds a layer of uncertainty to the situation.
