Ethereum (ETH) Price Surges Past $2,900, Overperforming Bitcoin in Recent Rally
The post Ethereum (ETH) Price Surges Past $2,900, Overperforming Bitcoin in Recent Rally appeared first on Coinpedia Fintech News
Ethereum has taken the lead in the crypto market, outpacing Bitcoin’s rally over the past week. ETH’s notable gain of over 16% in just seven days, reaching above $2,900 for the first time in nearly two years, has sparked renewed interest within the crypto community.
Ethereum vs. Bitcoin Performance
Bitcoin experienced a more modest 8.5% rise, reaching $52,300, the ether-bitcoin ratio surged by nearly 7% to 0.055. This shift comes after weeks of ETH trailing behind Bitcoin, which saw increased attention due to the debut of spot BTC ETFs in the U.S. and the impending halving of the quadrennial reward.
Factors Driving Ethereum’s Surge
Amberdata’s director of derivatives, Greg Magadini, suggests that Ethereum’s fundamentals now appear more favorable than Bitcoin’s.
Magadini says, “Everyone is talking about the Bitcoin halving in April, but that’s nothing compared to the active ‘REDUCTION’ in ETH supply already occurring since Sept. 2022.” He emphasizes that “ETH is the next play here! Low ETH/BTC ratio, actively finding a bid, [with ETH’s] fundamental supply picture even better than BTC.”
Since The Merge, Ethereum has burned 1,407,200 ETH, causing a net supply reduction of 359,557 ETH or 0.209% year-on-year.
This deflationary trend results from Ethereum burning a portion of transaction fees paid to validators, as Magadini points out,
“Combine this ETH ‘Supply BURN’ with dormant STAKED ETH and mix in a SPOT ETF actively putting ETH into cold storage … all of a sudden, the supply story for ETH is as bullish as fundamentals can get.”
Several other factors contribute to Ethereum’s bullish momentum. The upcoming Dencun upgrade scheduled for March 13 is expected to slash transaction costs.
In addition, Ethereum co-founder Vitalik Buterin expressed his excitement about integrating AI with the Ethereum network, stating,
“One application of AI that I am excited about is AI-assisted formal verification of code and bug finding. Right now ethereum’s biggest technical risk probably is bugs in code, and anything that could significantly change the game on that would be amazing.”
Furthermore, the SEC is anticipated to approve spot ether ETFs in the U.S. later this year. Magadini highlights the significance: “AI can further boost it.”
Ethereum’s recent surge above $2,900 signifies a notable shift in market dynamics, with the cryptocurrency now leading the rally ahead of Bitcoin. The reduction in ETH supply and positive developments such as the upcoming Dencun upgrade, AI integration, and potential ETF approval have led to Ethereum’s bullish momentum.
Read More
Ethereum (ETH) Price Surges Past $2,900, Overperforming Bitcoin in Recent Rally
The post Ethereum (ETH) Price Surges Past $2,900, Overperforming Bitcoin in Recent Rally appeared first on Coinpedia Fintech News
Ethereum has taken the lead in the crypto market, outpacing Bitcoin’s rally over the past week. ETH’s notable gain of over 16% in just seven days, reaching above $2,900 for the first time in nearly two years, has sparked renewed interest within the crypto community.
Ethereum vs. Bitcoin Performance
Bitcoin experienced a more modest 8.5% rise, reaching $52,300, the ether-bitcoin ratio surged by nearly 7% to 0.055. This shift comes after weeks of ETH trailing behind Bitcoin, which saw increased attention due to the debut of spot BTC ETFs in the U.S. and the impending halving of the quadrennial reward.
Factors Driving Ethereum’s Surge
Amberdata’s director of derivatives, Greg Magadini, suggests that Ethereum’s fundamentals now appear more favorable than Bitcoin’s.
Magadini says, “Everyone is talking about the Bitcoin halving in April, but that’s nothing compared to the active ‘REDUCTION’ in ETH supply already occurring since Sept. 2022.” He emphasizes that “ETH is the next play here! Low ETH/BTC ratio, actively finding a bid, [with ETH’s] fundamental supply picture even better than BTC.”
Since The Merge, Ethereum has burned 1,407,200 ETH, causing a net supply reduction of 359,557 ETH or 0.209% year-on-year.
This deflationary trend results from Ethereum burning a portion of transaction fees paid to validators, as Magadini points out,
“Combine this ETH ‘Supply BURN’ with dormant STAKED ETH and mix in a SPOT ETF actively putting ETH into cold storage … all of a sudden, the supply story for ETH is as bullish as fundamentals can get.”
Several other factors contribute to Ethereum’s bullish momentum. The upcoming Dencun upgrade scheduled for March 13 is expected to slash transaction costs.
In addition, Ethereum co-founder Vitalik Buterin expressed his excitement about integrating AI with the Ethereum network, stating,
“One application of AI that I am excited about is AI-assisted formal verification of code and bug finding. Right now ethereum’s biggest technical risk probably is bugs in code, and anything that could significantly change the game on that would be amazing.”
Furthermore, the SEC is anticipated to approve spot ether ETFs in the U.S. later this year. Magadini highlights the significance: “AI can further boost it.”
Ethereum’s recent surge above $2,900 signifies a notable shift in market dynamics, with the cryptocurrency now leading the rally ahead of Bitcoin. The reduction in ETH supply and positive developments such as the upcoming Dencun upgrade, AI integration, and potential ETF approval have led to Ethereum’s bullish momentum.
Read More