After several waves of growth, Ethereum could go sideways following bitcoin. But there is a forecast that it will continue to grow instead at the expense of bitcoin.
While the king of cryptocurrencies rolls back from the $60K level, the leading altcoin is showing that it is ready to continue rising. For several years, the two leading cryptocurrencies have shown comparable dynamics. Ethereum generally rallied following the BTC rally and also declined when bitcoin dropped. But for over a year now, ETH has behaved differently. It rises from time to time when bitcoin drops. Analysts attribute this to the actions of long-term investors who shift funds from BTC to ETH.
Currently, Bitcoin Dominance has dropped to around 42%. The share of bitcoin has been steadily declining for several weeks now. But there is still a chance that altcoins will drop following the crash of BTC. Bitcoin is now far from all-time highs (ATH). Meanwhile, Ethereum is updating ATH all the time. Obviously, long-term investors tend to diversify their risks, so they distribute investments across different cryptocurrencies. It’s not just about ETH or altcoins from the TOP-10. On the news, different altcoins surge from time to time, from the mindless Shiba Inu (SHIN) to the functional EOS (EOS). The news, on which EOS grew by almost 50% per day, concerns the creation of the Bullish Global exchange on the blockchain of this cryptocurrency.
As for ETH, its further positive dynamics are almost guaranteed. First, there is growth in anticipation of the update named London in July. After this update, the system for calculating fees will be completely changed. Fees will stop growing in response to the growth of DeFi projects launched on the Ethereum network. The number of projects will increase, capitalization will grow, and the price of ETH will also rise.
Secondly, there are indicators that investors are withdrawing ETH from exchanges, highly likely to the cold wallets for long-term storage. Analytic company Glassnode has published a report that in 9 months the number of ETH on exchanges has decreased by a third. Now only 11.5% of the total supply of Ethereum, approximately $53 billion, are held at the exchanges. Analysts at Glassnode also note that BTC hodlers, on the contrary, began to return cryptocurrency to exchanges.
According to Glassnode, bitcoin hodlers are becoming ETH hodlers, or perhaps trading BTC for other altcoins. As a result, bitcoin will stop rising and remain below $60K, or possibly it will decline. Ethereum is likely to rise by another 20-30%. Already, its capitalization is almost half a trillion now. The market share of ETH is about 20%, which is almost half of Bitcoin Dominance.