Sentiment on ethereum has eased in recent weeks as bitcoin came into the spotlight with a push towards a new high in 2023.
Additionally, rival blockchains like Solana and Avalanche are gaining traction, with token price gains outpacing eth.
On December 21, Glassnode analyst “Checkmatey” opined that the decline in the market cap ratio between eth and btc might be only halfway there.
He made the case that bitcoin It is likely to continue to increase its dominance relative to ethereum.
ethereum sentiment weakens
Furthermore, across all derivatives markets, bitcoin's dominance continues to grow relative to ethereum, he noted, adding that it is now at 70% of the territory.
A monthly change in realized market capitalization shows much larger capital inflows for bitcoin, at $13.8 billion per month, compared to just $6 billion for ethereum.
“This suggests that bitcoin is experiencing increased buyer demand,” he said.
If history is any guide, the decline in the market capitalization ratio between $eth and $btc It may only be halfway there…
Below is a covering some different measures of market dominance between bitcoin?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#bitcoin and ethereum?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#ethereumwhich presents arguments for continuation, not reversal.https://t.co/RiPVkb7zoF pic.twitter.com/x0Wa1tldmm
— _Checkɱate (@_Checkmatey_) December 20, 2023
He also noted that ethereum's realized market capitalization remains overvalued compared to bitcoin. As eth holders capitulate and sell at a loss, setting prices lower, ethereum's realized limit will fall further.
Additionally, bitcoin tends to recover faster than ethereum after drops in realized market capitalization. Exchange flow metrics also show that bitcoin has a dominance of over 75% in transfer activity.
it is not all pessimism However, for the world's second-largest crypto asset, these periods of calm in sentiment occur every cycle. On December 21, ethereum advocate Anthony Sassano commented in this:
“It seems like we have finally reached the “death of the eth party” phase of the cycle. I just bought more eth to celebrate.”
His ethereal companion Ryan Sean Adams saying He was “stunned” by all the eth negativity.
“I never thought eth would be seen as a non-consensus loser again, but here we are,” he said.
Fundamentally, ethereum is as strong as ever, as detailed by Sassano earlier this week.
eth prices remain stable
ethereum Prices They have remained stable for most of the past week, fluctuating between $2,150 and $2,250. However, it has gained 83% since the beginning of this year, which is not bad at all for a dead coin.
At the time of writing, ethereum was changing hands for around $2,200, having gained 9% in the last 30 days.
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