Market intelligence firm Glassnode says leading digital asset Bitcoin (BTC) has been usurped as the best indicator of the crypto industry’s momentum.
In a new analysis, Glassnode co-founders Jan Happel and Yann Allemann note that leading smart contract platform Ethereum (ETH) appears to be the crypto market’s new benchmark.
“Looking back to the time since 2021, we can see a trend of Bitcoin losing its position as the key driver behind the crypto space, especially when comparing the performance between Bitcoin, Ethereum, and the top 20 traded coins.”
The Glassnode co-founders also say that ETH could become more appealing to blue-chip investors after it transitions into a proof-of-stake blockchain later this year.
“Ethereum has come back to the forefront, as news of a successful merge on the Kiln testnet made the estimated June merge (meaning the transition to proof-of-stake) much more realistic.
This transition, if successful, will make Ethereum much more attractive to institutional investors following ESG (environmental, social, and governance) mandates; it will also lead to a massively reduced supply as ETH will turn into a deflationary asset.”
Developers expect Kiln to serve as the final public testnet before ETH converts to a proof-of-stake mechanism, according to the Ethereum Foundation.
Happel and Allemann told their 52,100 Twitter followers in late March that ETH looked stronger than Bitcoin “from a fee perspective.”
2/ ETH/BTC shows that #Ethereum begins to gain ground, breaking out of the long-term #BTC dominance period started in Nov 2021. pic.twitter.com/EmZxBd9s1o
— 𝗡𝗲𝗴𝗲𝗻𝘁𝗿𝗼𝗽𝗶𝗰 (@Negentropic_) March 22, 2022
Ethereum is trading at $3,458.25 at time of writing. The second-largest crypto asset by market cap is up more than 31% in the past month.
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Alberto Andrei Rosu/Natalia Siiatovskaia