What to Expect — DailyCoin

Ethereum Gets Stronger Than Bitcoin What to

Bitcoin is up almost 9% in the last 7 days, but in the same period it is the largest Altcoin competitor, Ethereum, posted even higher gains of 14% as ETH bounced back to psychological levels of $3,000 for the first time since early March.

With the cryptocurrency market showing signs of bullish sentiment, it appears investors are once again getting a taste for riskier assets than stablecoins, whose influxes are also increased on crypto exchanges.

“Demand and adoption of Ethereum is strong”, say the co-founders of Glassnode.

It is clear from the Glassnode data shared with the Twitter community that Ethereum is currently much more in demand than Bitcoin, based on the total transaction costs generated during the same period.

The data charts also show that Ethereum is starting to gain ground to break out of its long period of Bitcoin dominance.

In addition, interest in Ethereum futures and options has continued to rise, signaling a potential bottom as investors begin to position themselves for the next big step, the team behind Glassnode points out.

“The strong demand for ETH calls shows that positions are speculative and bullish in this particular case,” they claimed.

There are several explanations for this optimism. Ethereum’s major network transition from the Proof of Work (PoW) to the Proof of Stake (PoS) protocol is slated for this summer, following the final public Ethereum testnet before the migration that successfully completed last week.

The US Central Bank increased interest last week. outlining expectations for tighter monetary policy to mitigate historic inflation rates, which have risen even more since the Russian invasion of Ukraine and subsequent severe economic sanctions.

While this could bring more clarity to financial markets in general, the decision could also come as a double-edged sword for digital currencies.

The global economic situation remains unclear, with financial experts predicting recession in the coming years. If this happened, investors could potentially lose their appetite for risky investment assets, which would likely have a strong impact on the cryptocurrency market.

Bitcoin’s declining dominance has traditionally been regarded as a good sign for alternative digital assets, for which Ethereum represents as a major force for the Altcoin market as a whole. According to CoinMarketCap, the Bitcoin dominance index is currently approaching 42 percent, while Ethereum’s is around 18.6 percent.

More specifically, Ethereum has exited cryptocurrency trading platforms in record numbers in recent weeks.

Statistics from Glassnode show that there is approximately $26.4 million worth of ETH stored on exchanges at the time of writing, the lowest number since May 2019. Historically, a decline in equity on exchanges indicates that market participants are more willing to invest. buy or hold rather than sell.

Such sentiment is already being reflected on crypto social media, with multiple voices believing that Ethereum will break out soon, possibly even in 5-digit territory.

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