Even with a significant flow of capital into the recently introduced bitcoin spot ETFs, the anticipated positive influence on the btc price has yet to materialize. bitcoin saw a drop of more than 5% following the approvals last week.
In contrast, ethereum recorded an increase of almost 8% during the same period despite struggling to hold the $2,600 level. Data suggests that the price dominance of the world's largest altcoin continues to increase against bitcoin.
ethereum's growing dominance
According to on-chain analytics firm Santiment, there has been a significant increase in ethereum's market dominance over bitcoin. Last week alone, the figure saw a notable increase of more than 22.4%.
During this period, an average of 89.4 thousand new ethereum addresses were generated daily, emphasizing the growing popularity of the network. In addition, on January 16, 96.3 thousand wallets were created.
ethereum?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#ethereumPrice dominance continues to increase against bitcoin?src=hash&ref_src=twsrc%5Etfw” data-wpel-link=”external” target=”_blank”>#bitcoin's, now +22.4% in a week. During this stretch, 89.4K new ones have been produced $eth addresses created per day and 96.3 thousand wallets yesterday. Furthermore, the offer of the second asset with the highest market capitalization in
(Continued) pic.twitter.com/9nHCl6PJPy
– Sentiment (@santimentfeed) January 16, 2024
Planned upgrades to the ethereum network, starting with the Dencun hard fork, are one of the catalysts driving Ether's appeal and forming a bullish outlook among investors. These events could present an opportunity for the leading altcoin to further decouple from the rest of the crypto market.
A recent analysis by QCP Capital revealed that bitcoin forwards have also sunk deeper than Ether forwards. The 1-month interest rate for bitcoin fell from a high of 32% annually to a low of 9%, reflecting a 23% decline. Similarly, the 1-month rate for Ether decreased from a high of 28% to 12%, which is a reduction of 16%.
The digital asset trading company added:
“eth forwards still look attractive even though yields are falling, paying 11% to 13% annually. Selling eth 1m 2200 Puts is also a decent option with returns of over 21% annually. and a decent level to buy if there is a drop in potential eth spot ETF approvals.”
Looking ahead, upcoming major events include the bitcoin halving scheduled for mid-April and the possible approval of ethereum spot ETFs starting in May. Meanwhile, broader macroeconomic developments may influence the direction of the market in the meantime.
Ether swap supply nears all-time low
The supply of Ether on crypto exchanges has been steadily declining. In the last ten days, Santiment notes that the figure has dropped from 8.18% to 8.10%. This supply is currently approaching an all-time low of 8.05%.
This trend indicates that Ether holders have increasingly moved their reserves from crypto exchanges to long-term storage in anticipation of a price increase.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off fees on Binance Futures for the first month (terms).
<!– ai CONTENT END 1 –>
