The ether (ETH) scenario has been changing rapidly as an individual entity for some time. However, the idea has been gaining more mainstream attention over the past few months as it has been better highlighted that since October 1, ETH has shown a significant northward movement against Bitcoin (BTC).
To put things in perspective, at the beginning of November, the monthly correlation between the BTC / ETH pair dropped to 60%, the lowest rate in the currency’s ten-year history. In addition, since the beginning of the year, Ether has grown by 505%, with Bitcoin sign-ups gaining 105%, surpassing the flagship crypto almost five times.
Perhaps the best example of an ether gain is that the ether / BTC pair has continued its downward trend over the past few months, despite a sharp decline in the market since the beginning of December. In this context, even as the value of BTC falls below $ 50,000, the price of the ETH / BTC pair continues to fluctuate, increasing rapidly by about 13%, thus reaching a three-year high.
The ‘return’ story
Speaking to the Binance research arm, a spokesman for the cryptocurrency exchange told Cointelegraph that the aforementioned activity, in which ETH gained considerable independent market support against Bitcoin, was quite unusual because the ETH / BTC pair rallied during a lone bull race: “It is ETH. This does not mean. The spokesman further explained:
“It’s important to recognize that ETH can no longer be considered a product, but a feature of its unique features. The major drivers of the recent rise can be attributed to the growing metavars, gamefires and NFT views on the ETH network.”
Although the ETH has not yet fully disintegrated, the spokesperson noted that such an approach can no longer be considered as a pipeline, as the overall scenario has begun to change as new cases of etherium use have become fruitful. Those who accept them.
Not only that, analysts suggest that a similar scenario could be very good for some of the other leading altcoins: “Like traditional stocks, there will be no difference between ‘BTC and altcoin’, but each signal is operated independently of the price. . Systemic and non-systemic risks. ”
Ignatius Terenas, head of communications at the cryptocurrency Bybit Exchange, told Cointelegraph at the end of the day that with more than six years of development and a huge number of built-in smart contracts, the value of digital assets would be determined by its supporters. And investors. Ethereum’s applications – including those related to new fields such as DeFi and NFTs – the identity of the existing BTC and the ecosystem – especially the independent communities that have created premium altcoin over the past year. “There will still be an overlap, but now there is enough difference to keep up with the change in price action,” Terenas said.
“As BTC and ETH camp population diversification continues, we expect the relevant price movements to become increasingly disconnected.”
ETH stands uniquely in the market
Netbs Korin, co-founder of public blockchain Infrastructure Orbs, told Cointelegraph that ETH’s direct northward movement since October 1 has been encouraging the news that real bitcoin ether may change in the near future. He said that while the vast majority of other cryptocurrencies show a high level of relationship with BTC, Ether is clearly the “oil for DApps”.
Corinne added that Ethereum surpassed Bitcoin as the most used blockchain, and even surpassed BTC in terms of recovery after market consolidation. He added that the upcoming Eth2 upgrade would improve the “demand perspective”:
“Given Ethereum’s new supply and demand mechanics and core financial infrastructure and its position as a critical backbone for some popular projects like MakerDAO and Uniswap, ETH unbundling is a potential reality. ”
Corinne also mentioned that Ethereum is a key player in DeFi and a centralized platform for NFT space that seeks to lend and exchange financial applications in blockchain. Not only that, Ether can be an inflation hedge because it has two growth areas, DeFi and NFT connected to the market.