The CEO of on-chain analysis firm CryptoQuant, Ki Young Ju, thinks that Ethereum (ETH) could outperform Bitcoin (BTC) over the long term.
Ki Young Ju tells his 239,700 followers that Ethereum could hit a new record high before Bitcoin does. Part of the CEO’s reasoning is that Ethereum is closer to its all-time high (ATH) relative to the flagship cryptocurrency.
“ETH might reach its all-time high earlier than BTC in the long term. Current ETH price is closer to ATH compared to BTC.”
Ki Young Ju also says that Ethereum is experiencing a supply shock and that Bitcoin’s exchange outflows have slowed, possibly signaling that bullish sentiment has cooled off.
“Higher demand, lower supply. ETH sell-side liquidity crisis still intensifies, while BTC exchange reserve stopped its downward trend in May.”
The CryptoQuant CEO also says that whales are staking an increasing amount of Ethereum, which could be another bullish sign.
“Another evidence that ETH is bullish in the long term. It seems whales who staked a lot of ETH to the ETH 2.0 contract before the price surge, staked a ton of ETH to the contract again. These whales seem to think the fair price for ETH is higher than [$3,000] in the long term.”
According to CryptoQuant, more than 5% of ETH’s total supply is staked in the Ethereum 2.0 staking contract.
“5.84% out of the total ETH supply is staked in the ETH 2.0 contract.”
ETH 2.0 refers to the move from a proof-of-work to a proof-of-stake consensus mechanism, which will allow users to stake Ethereum in order to validate blocks and earn rewards.
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Featured Image: Shutterstock/Sergey Nivens