Ethereum’s Growth Outpacing Bitcoin
Ethereum has made significant gains in the crypto market over the past week, surpassing Bitcoin’s rally. With an increase of over 16% in just seven days, Ethereum reached over $2,900 for the first time in nearly two years, sparking renewed interest within the crypto community.
Ethereum vs. Bitcoin Performance
Bitcoin saw an 8.5% rise, reaching $52,300 while the ether-bitcoin ratio surged by nearly 7% to 0.055. This shift follows weeks of ETH trailing behind Bitcoin, which had 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, notes that Ethereum’s fundamentals now appear more favorable than Bitcoin’s. 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.
Other Factors Contributing to Ethereum’s Momentum
Several other factors contribute to Ethereum’s bullish momentum. The upcoming Dencun upgrade, scheduled for March 13, is expected to reduce transaction costs. Additionally, Ethereum co-founder Vitalik Buterin expressed his excitement about integrating AI with the Ethereum network.
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.” With the reduction in ETH supply and positive developments such as the upcoming Dencun upgrade, AI integration, and potential ETF approval, Ethereum has experienced a notable shift in market dynamics, leading the rally ahead of Bitcoin.
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