In the past year, Ethereum (ETH) did not reach Bitcoin (BTC) in terms of price growth. However, this situation may change in the future.
The possible reversal is due to the technological advances of the project. Additionally, Ethereum is still considered the leading platform for smart contracts. With this opinion shared head of research at ETC Group Andre Dragos.
Since 2015, ETH has always outperformed BTC
In the latest report, Dragos emphasized that the rise in the price of the second cryptocurrency will largely be facilitated by the “deflationary burning mechanism”, which was introduced as part of EIP-1559.
The reduction in supply and the attractiveness of staking returns could cause ETH's capitalization to exceed BTC's.
Dragos also added that the annual performance of Ethereum and Bitcoin has historically shown a tendency to return to the average. The same thing will happen with ETH in 2024, the expert believes. Since 2015, the second cryptocurrency has always been ahead of Bitcoin. The exception was 2023.
What's up with the price of Ethereum?
On the night of December 28, the price of ETH updated its annual maximum at $2,447 on the Binance cryptocurrency exchange. The last time the rate reached this level was in March 2022.
By the time of writing, the price of the second cryptocurrency had adjusted to $2,380. According to CoinGecko, over the past 24 hours, the price of Ethereum has strengthened by 6.9%.
Over almost the past year, the asset has collectively grown by 99.5%. Bitcoin, meanwhile, increased by 158.5%.
Arthur Hayes, a popular analyst in the crypto community, expects that the Ethereum rate will soon break through the $5 thousand level.
Source: Cryptocurrency
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