Ethereum (ETH) and Leading Altcoins Are Growing Faster Than the Market With the Expectation of Ethereum 2.0 Launch

Ethereum (ETH) and Leading Altcoins Are Growing Faster Than the Market with the Expectation of Ethereum 2.0 Launch

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The leading altcoin is showing good positive dynamics, which will intensify by the end of the year, experts say.

After the recent market crash, ETH is growing much faster than the leading cryptocurrency BTC. The ETH/BTC ratio is already above 0.08, and this is even though bitcoin is also rising. However, Ethereum is moving up faster and is ready to update the all-time high, which was set on November 10 at a level above $4.86K.

Experts note that Ethereum has become more stable than bitcoin after the Fed announced that it would start to shutter the QE program before the end of the year. Despite the Taproot update, bitcoin serves mainly as a store of value. And the Ethereum platform is an advanced startup that promises higher ROI (return on investment) to investors due to the new opportunities that decentralized finance (DeFi) scopes. Therefore, investing in ETH is more profitable, and will become even more attractive after the launch of Ethereum 2.0. This is confirmed by information about ETH held on exchanges.

According to the analytical platform CryptoQuant, the supply of ETH on exchanges has now dropped to a new low and amounts to 14% of the total emission. At the beginning of the year, 21% of the total ETH supply was held on exchanges.

An important factor in the steady growth of ETH is the regular token’s burning. This powerful deflationary measure was launched with the upgrade London on 5 August. Since then, more than one million ETH has been burned, worth about $4.7 billion. At the end of last week, the price of ETH dropped to $4K, yesterday the price reached $4,765 according to Coinmarketcap. The growth was almost 20% in a few days. Now ETH is correcting within 5%.

The faster growth of ETH is hampered by the development of young projects that compete directly with Ethereum. Investors who are not willing to leave the cryptocurrency market are ready to invest in these projects because they have advanced functionality like Solana (SOL) and Cardano (ADA) or grow due to aggressive marketing like Binance Coin (BNB) and Crypto.com (CRO).

Crypto exchange Binance has experienced difficulties with regulators in different countries for some time but managed to overcome these problems by recruiting former employees of regulatory organizations. In addition, CZ, the CEO of Binance, manages to use crypto innovations quickly.

Recently, the Bruno upgrade was launched in the Binance Smart Chain, which added the ability to burn part of the fees. BNB is now using the same deflationary mechanism that was added by the London upgrade to the Ethereum network. About 10% of the fee is burned now. In addition, part of the tokens bought for 20% of the exchange’s profit is burnt quarterly, as a result of the Binance buyback program. Both deflationary mechanisms enable BNB to rank third place in terms of capitalization.

Ethereum rivals are rushing to take a higher position in the market now, while the transition to Ethereum 2.0 with a Proof-of-Stake consensus is underway. Many experts believe that ETH 2.0 will send ETH “to the Moon” and it will be much more difficult to compete with it.