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Ether’s Growth As A Standalone Asset Fuels The Narrative That It Will Surpass BTC Soon.

For a considerable while now, there’s been a storey circulating about Ether (ETH) rapidly transitioning into an autonomous asset. Nevertheless, in recent months, this view has gained growing public acceptance, as evidenced by the truth that, following Oct. 1, ETH has demonstrated significant northward movement versus Bitcoin (BTC).

To keep things in context, in the start of November, the one-month realised connection amongst the BTC/ETH pair was as weak as 60%, the weakest in the currency’s decade-long history. Moreover, whereas Bitcoin has gained 105 percent since the beginning of the year, Ether has gained 505 percent, beating the flagship cryptocurrency by approximately 5 times.

Ether’s ascendancy is arguably best demonstrated in the fact that, notwithstanding a significant market drop since the beginning of December, the ETH/BTC pair has remained to move north throughout the previous few months. In this respect, even as the value of BTC dropped below $50,000, the ETH/BTC pair price steadily increased, soon climbing by roughly 13% and reaching a three-year high.

The storey of ‘flipping’

Communicating with Binance’s data analysis wing, a representative for the cryptocurrency exchange informed Cointelegraph that the above-mentioned activity — in which ETH has been eligible to summon up a bunch of self-governing market support against Bitcoin — has been somewhat strange given that the ETH/BTC pair typically only rallies all through bull runs, incorporating: “This is not to suggest that ETH also has decoupled from BTC, but it given a comprehensive peek that not all alts are

However ETH is very far from becoming entirely decoupled, the representative stated that such a concept is no longer merely a silly idea, as the general storyline is currently shifting as a result of Ethereum’s new emergent use cases and acceptance.

Hardly that, but the analyst believes that a comparable circumstance could perform for a multitude of other notable altcoins even: “Much like in conventional equities, there will be no difference between ‘BTC and alts,’ but instead prices of all tokens will be autonomously influenced by both systematic and unsystematic dangers.”

According to Igneus Terrenus, chief of communications for cryptocurrency exchange Bybit, the value of a digital asset is ultimately ascertained by its backers and investors, and with further six years of development and a multitude of smart contract apps established atop Ethereum — such as those linked to fledgling spaces besides DeFi and NFTs — the premium altcoin has since established an individuality and ecosystem of communities that reside autonomously.

ETH has a distinct market stance.

Netta Korin, co-founder of Orbs, a global blockchain technology, told Cointelegraph that ETH’s sharp northward trend since Oct. 1 gives credence to the idea that Ether might genuinely switch Bitcoin in the nearest term. Notwithstanding the premise that the vast majority of other cryptocurrencies continue to have a significant relationship with BTC, she noted that Ether has clearly demonstrated to be “oil for DApps.”

Korin went on to say that Ethereum has long surpassed Bitcoin as one of the most widely used blockchains and that it has outperformed BTC when it regards to recovering from market downturns.

Ethereum’s unique supply and demand mechanisms, as well as its role as the main financial infrastructure and a critical backbone for many of the biggest prominent projects, ETH decoupling is now a possibility thanks to Uniswap and MakerDAO

Can ETH’s continuing autonomy aid BTC’s growth?

If ETH decoupling becomes an actuality, how will this affect a prospective BTC bullish movement if the ETH/BTC pair begins to rise? On the matter, a source from Binance’s research team told Cointelegraph that even if the price disparity between the ETH/BTC pair keeps increasing at its present rate, it’d be incorrect to conclude that the change might contribute to an absolute growth surge for BTC.

Having said that, the Binance expert did admit that, on the other hand, they continue to predict a devouring spree amongst both retail and institutional investors as they race to boost their stake in ETH.

A further feature of ETH that has several investors excited is the network’s capability to acquire a significant footing in the emerging Web 3.0 ecosystem, which is immensely popular right now despite the fact that its actual deployment is still decades far. While no one can predict how this area will grow in the future, there is a significant likelihood that ETH will grab a large portion of the value connected with the decentralised Web 3.0.

Lastly, the Ethereum network’s latest London update — which came online in August 2021 — changed the way the currency’s gas charge rates are computed, essentially burning a percentage of all ETH-based fees and lowering the altcoin’s overall supply pool. In terms of numbers, this has led to Ether’s yearly inflation rate falling from 4% to 3%.

Not just that, but Ether’s ever-changing financial rules are also intended to help turn the asset into a deflationary one, making it appealing to both long-term investors and institutional institutions. As a result, it logically follows that Ether’s reputation as an autonomous asset will simply get stronger.


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