Bitcoin price keeps rising, why isn't Ethereum keeping pace?

特邀专栏作者

2020-12-27 11:39 (UTC+8)

This article is about 834 words, reading the full article takes about 2 minutes

As the development of the Ethereum ecosystem moves forward, crypto assets will become major players through their intrinsic value.

AI Summary

Expand

As the development of the Ethereum ecosystem moves forward, crypto assets will become major players through their intrinsic value.

Bitcoin's recent performance has been challenging the entire market to up its game, however, so far there has been a gap. For example, Ethereum (Ethereum), the second most popular cryptocurrency in the market, has been growing, but it is not as high as Bitcoin on the price chart. What finally leads to this? All right,This makes the short-term performance of Ethereum continue to weaken.

According to data provider Skew, the price of ethereum relative to bitcoin has now fallen to a six-month low.

Back in January 2020, the ETH/BTC level had dropped to 1.7% on Skew’s chart. That performance was still a six-month low, although at 2.6% at the time of writing, it was well above the January 2020 figure.

Despite these setbacks, the larger Ethereum community remains positive about the digital asset’s relative growth.

At a time when digital assets are coming out of a period of consolidation, Ethereum has the upper hand in July.At the time, Ethereum’s DeFi craze caused the market to outperform Bitcoin. However, compared to Bitcoin, Ethereum’s performance continued to decline as the BTC rally started and the DeFi hype faded.

Since then, the market's second-largest digital asset has been forging a new path for itself, and since July,Ethereum’s Correlation With Bitcoin Has Been Declining. Although it has indeed recovered recently, there is still a certain gap compared with the level of the first half of the year.

The drop in correlation gives it an opportunity to execute independently and even escape a sudden sell-off in the bitcoin market, which is evident when analyzing the chart below from data provider CoinMetrics.

Looking ahead, when Bitcoin stabilizes, the value of Ethereum may get a chance to bounce back on its own.As the development of the Ethereum ecosystem moves forward, crypto assets will become major players through their intrinsic value.

2020 finally sets the direction for ETH 2.0, as it enters a new model, ETH will be burned instead of remitted to transaction validators, which will provide a strong support for deflation, which is beneficial to the way assets grow, Ethereum Will enable participants to secure transactions, and settlements will increase their value.

Such progress has beenSeparate Ethereum from other cryptocurrencies in the marketThe original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.

The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.