ethereum’s Unprecedented Growth: Outshining bitcoin with a Massive 98% Yearly Gain
The ethereum Revolution:
ethereum has been making headlines lately, leaving bitcoin in the dust. With a staggering yearly gain of 98%, ethereum’s price surge is not just significant but unprecedented. A 42% increase this year alone has everyone in the crypto space buzzing with excitement. But what’s driving this massive growth?
The Power of Proof-of-Stake:
ethereum’s move to proof-of-stake back in September 2022 was no small feat. This shift wasn’t just an update; it was a keyboards changer. By making ethereum’s supply deflationary, the ethereum Foundation introduced an essential concept: there’s less of it in circulation, creating a strong demand that is driving its value up.
eth Stashing Away Like Gold:
But here’s the kicker: only 11% of ethereum is currently available on exchanges, marking an all-time low. The rest? It’s being put to work in staking pools, DeFi contracts, and meme coin networks. With less ethereum circulating, the demand for it continues to soar.
Fees Skyrocketing:
As more and more use cases emerge for ethereum, from decentralized finance (DeFi) to non-fungible tokens (NFTs), the network’s fees have been rising in tandem. With an increased number of transactions taking place on the ethereum blockchain, people are locking up their eth to get a piece of the action. The more eth locked away, the less there is in circulation, pushing its value even higher.
Layer 2 Networks and the EIP-1559 Upgrade:
The rise of layer 2 networks, such as polygon and Optimistic Rollups, is making ethereum faster, cheaper, and more accessible. As DeFi continues to grow, ethereum’s value is soaring. Additionally, the highly anticipated EIP-1559 upgrade aims to slash ethereum layer 2 transaction costs by up to 90%, making it even more attractive for users.
Institutional Investors Jumping In:
Institutional investors are piling into ethereum, outpacing their bets on bitcoin. According to Bybit research, institutions now hold 80% of their crypto portfolios in bitcoin and ethereum, with a clear preference for the latter. This trend marks a shift from retail investors who have been spreading their bets across various altcoins.
The Future of Crypto:
With its price hovering around $3,221 and climbing, ethereum is not just outperforming bitcoin; it’s setting the stage for what could be the future of crypto. As the DeFi scene continues to thrive and layer 2 networks gain popularity, ethereum’s value is poised to reach new heights. The hype around the upcoming Dencun upgrade only adds fuel to the fire, making ethereum a must-watch asset for crypto enthusiasts and investors alike.
