Ethereum Outperforms Bitcoin Again

Ethereum has gained popularity as a result of its long-term performance. But it's the cryptocurrency's performance against main rival Bitcoin that's been most astounding. The latter, being the first cryptocurrency, has generated enormous profits for investors. As a result, the fact that Ethereum has outperformed it at every turn lends even greater credence to the digital asset.

When it comes to bitcoin, though, Ethereum does not appear to be slowing down its outperformance. ETH had been the better performer of the two throughout 2021, and this trend has continued into the new year, as the altcoin's surge, combined with the fact that the long-awaited 'Merge' is approaching, has once again put it ahead of its main adversary in the field.

Ethereum price rises by 16 percent

The start of the new week has been fruitful for Ethereum. On Monday, the altcoin began a new climb that cemented its position over the $3,000 price level. Following the latest spike, ETH saw a 16 percent boost, making it one of the altcoin's most profitable weeks in recent memory. The altcoin is still trading above $3K in the early hours of Tuesday.

The outperformance of bitcoin by Ethereum has been noticeable in the same week. Bitcoin had gained 8.4% in the previous week, while Ethereum had gained as much as 16 percent in the same time frame. This follows the same pattern as last year when Ethereum's year-over-year return surpassed 300 percent while bitcoin's remained below 200 percent.

When comparing the performance of BTC and ETH during downtrends, BTC still outperforms ETH. This year's slump has seen ETH lose up to 17 percent of its value, while BTC has lost only 7% of its value. While carrying the market on its back, the latter continues to hold up well against the bears.

Why Is ETH Doing So Well?

The current outperformance of Ethereum can clearly be ascribed to the upcoming upgrades. This upgrade, which will switch the network to a proof of stake method, making it a more energy-efficient and speedier alternative to bitcoin, has been in the works for quite some time. The final phase of this transition is expected to commence in mid-2022, thanks to a recent update.

'The Merge,' as it is known, was put on the last testnet, the Kiln testnet, which is now solely based on proof of stake. This indicates that the Ethereum main net is preparing to join.

Following this, there has been a surge in interest in Ethereum. The increased number of validators on the staking queue is one of the ways this has materialized. This figure has been steadily increasing, and it is now approaching an all-time high.

The value of the digital asset is projected to rise as the upgrade approaches. ETH is now trading at $3,007 at the time of writing.

Be the first to comment!

You must login to comment

Related Posts

 
 
 

Loading