- Ethereum Fundamentals Remain Strong
- Bitcoin Appears to Be Less Volatile than Altcoins
Ethereum News Today – Since Ethereum (ETH) tested its all-time high at $1,448, the digital currency has plunged by about 88 percent. Ethereum has been showing a sluggish price trend since the beginning of this year. However, a digital currency investor – Spencer Noon – said that the fundamentals of Ethereum are still strong as the total value locked in DeFi applications continues to increase.
Ethereum Fundamentals Remain Strong
Noon compared the price of the digital currency since the beginning of this year to the total amount of USD locked in decentralized finance (DeFi). In his research, he discovered that the price of the digital currency does not really depict the growth of the blockchain network. When it comes to price, this year has not been a very good one for Ethereum (ETH) compared to its performance over the past years.
Ethereum (ETH) Price Today – ETH / USD
At the beginning of this year, the price of Ethereum (ETH) was hovering around the $130 range. Since then, it has only surged to $174, which is an increase of about 30 percent. When compared to Bitcoin (BTC), BTC surged from $3,800 to $8,300 at the time of writing. This is an increase of over two-fold in the same period.
Some analysts are saying that irrespective of the signs of decent growth of the Ethereum blockchain when it comes to users, gas usage, and developer activity, the prolonged correction of the digital currency market exhausted investors. This resulted in the selloff of more risky assets.
The co-founder of EthHub – Eric Conner – said:
“For the first time ever, the block gas limit of Ethereum passed 9 million. The network now has 12.5 percent more capacity than last week and is still on the rise.”
Bitcoin Appears to Be Less Volatile than Altcoins
Digital currencies as an asset class are considered risky by the broader market of investors. However, within the digital currency market, Bitcoin (BTC) tends to show less volatility rate compared to altcoins. The prospect of the bear market of digital currencies lasting longer than the expectations of analysts pushed investors to hedge their positions with cash on trading platforms and stablecoins such as Tether (USDT). This has created a challenging environment for even top digital currencies such as Ethereum to rebound.
Ethereum (ETH) and other altcoins tend to show higher volatility when Bitcoin (BTC) is trading sideways. As a result, when the daily trading volume of Bitcoin (BTC) was around its yearly low earlier this year, the daily trading volume of Ethereum reached its year-to-date high at $1.64 billion on BitMEX alone. Nevertheless, Ethereum has been struggling to return to that level since then.