A total domination scenario: The case for Ethereum (ETH)
- The high volatility of crypto prices was in the foreground of the crypto trends this year and leaves investors skeptical of the market.
- has risen about 230% so far this year, outperforming other big coins for the year.
- Ethereum has been bullish this year and soared to new levels due to its utility and new institutional push.
- ETH seems to have regained its bullish form amid a crash in crypto prices.
There have been a number of big surprises in cryptocurrencies this year due to their volatility. 2021 has seen the massive adoption of cryptocurrencies in more private and government institutions.
Ethereum vs .: 2021 edition
The leading altcoin Ethereum has been hot on the heels of Bitcoin in terms of market cap, and the token is not slowing down. As more and more investors become optimistic about Ethereum this year, its market cap hit $ 500 billion, making it the second cryptocurrency to hit that mark.
Although Bitcoin is the largest cryptocurrency by market cap, hitting over $ 64,000 earlier this year, Ethereum saw the strongest growth, rising over 230% to $ 2,200 while Bitcoin grew below 38%.
Another bullish trend at ETH
Amid the collapse in cryptocurrency prices due to crackdown on cryptocurrency mining and other related activities, Ethereum has grown 230% this year. The market price crash caused ETH to fall from a record high of over USD 4,000 to below the USD 2,000 mark.
The bulls have successfully defended the $ 1,700 resistance level this week, with the much higher resistance level of $ 2,000 firmly in their sights, marking the birth of a new price rally.
The bulls were able to push the price above $ 1,800 and further to $ 1,850. Yesterday the price soared over $ 2,000 as the trading price is at $ 2,220 at the time of writing.
This current uptrend could see the price skyrocket to $ 2,500 and regain its lost value.
Ethereum will dominate the market and see a major price rally in the coming months. A value of $ 4,000 shows how much use the native token of the Ethereum blockchain has in the market.
With over 3,000 decentralized applications on the Ethereum blockchain, there is no doubt about the usefulness of ether as it leads the success stories among smaller cryptocurrencies.
JP Morgan Chase and Morgan Stanley (NYSE :), who showered the altcoin giant with praise, stated that part of the reasons for Ethereum’s success lies in its recent institutional adoption and underlying blockchain.
ETH 2.0, a network upgrade that increases its scalability while lowering gas charges, will increase transaction speed on the blockchain to over 10,000 transactions per second.
The Ethereum blockchain has been plagued by scalability issues and ETH 2.0 will solve this problem. The development further promises to increase the price of ETH on the market.
On the downside
- Ethereum has lost nearly 50% of its value since hitting $ 4,300 this year.
- Bitcoin has much wider institutional and national acceptance than Ethereum.
ETH started the year strong at $ 737 and was trading at $ 2,220 at the time of writing. Ranked # 2 on CoinMarketCap, Ethereum holds a market share of 17.54%, while Bitcoin remains the largest cryptocurrency with a market dominance of 46% and a market capitalization of over $ 600 billion.
Some speculation suggests that if ETH continues to outperform BTC as it has been this year, it will battle for Bitcoin’s # 1 spot.
At this point last year, Bitcoin was trading at $ 9,140, as opposed to ETH, which was only trading at $ 225. In retrospect, Bitcoin has had the edge over the years, but ETH is on an upward trend and looks increasingly likely to get closer to Bitcoin.
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