Ethereum has cleared $4,000, marking a significant milestone as DeFi tokens rally against Bitcoin. The anticipated altcoin season appears to be upon us, with Ethereum and various altcoins leading the charge while BTC dominance experiences a sharp decline.
ETH has surged nearly 14% this week, while BTC has only managed a 4% increase, despite finally breaching the monumental $100,000 level. Over the past two weeks, BTC dominance (BTC.D) has plummeted from 61% to 55%, coinciding with a surge in total crypto market capitalization to new heights.
This divergence is not solely driven by Ethereum; DeFi tokens have also played a significant role. Notable performers include HYPE, which has skyrocketed 330% in the last week, AAVE with a 43% increase, and ONDO, which is up 47%.
The widening gap between BTC and altcoins was exacerbated by a massive Bitcoin leverage wipeout on December 5, leading to over $200 million in leveraged longs liquidated within just 30 minutes. BTC fell from $99,000 to $91,000 in under an hour, with some speculating it could be the largest liquidation event in Bitcoin's history.
Interestingly, unlike most major liquidation events, altcoins remained relatively stable during BTC's flash crash, contributing to a total crypto market cap increase of 1.6%, reaching an all-time high of $3.88 trillion.
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