After the recent price dip of Bitcoin and other cryptocurrencies, the prices have been moving back to new highs. And the first one to do this is Ethereum. It had an all-time-high at around $2650, but during the dip, the currency made a low of $2143. After that, it bounced back quicker than every other coin in the market and yesterday made a new ATH of $2720. But after that, the price has consolidated to $2630, and the market has been showing a downside momentum.
Why is Ethereum doing better than Bitcoin?
Yes, Bitcoin might be the largest cryptocurrency but is not performing as well as Ether recently. The returns of the latter have been much better than Bitcoin in the last year. Another reason that it is doing better than Bitcoin is the huge number of applications associated with it. The newfound interest in DEFI and NFts has been a major use case of Ethereum and has led to an increase in its price.
We also have the new changes announced to Ether which will actually be great as they promote the use of the currency. The GAS fees will reduce, and at the same time, tokens will be burned at a fast rate which could even mean negative inflation. A few days back, I read a tweet saying that the number of Ethereum produced daily will become lesser than the number of BTC mined daily by the end of the year. So with the rising use cases but falling supply, there could be an unstoppable rally by the end of this year. The 2021 target for Etherum is anywhere between 12k-17k. It might not seem realistic but with the kind of rally going on, it’s not very far-fetched.
What are your thoughts on Ethereum hitting an all-time high? And do you think today it will be able to continue the rally? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.