Ethereum has been giving sweet returns recently. After the dip on April 25th, it has almost doubled today after moving past $4k. The cryptocurrency is the 2nd largest coin by market cap and is slowly moving closer to Bitcoin. These colossal gains of the coins mark the beginning of the second phase of the crypto market. This phase is when Bitcoin dominance will drop, and ETH will perform better. This means that the kind of returns we can expect of ETH is much higher than what we can see of BTC.
— Ash WSB 🍥 (@ashwsbreal) May 10, 2021
BTC is stuck, but ETH is rising!
If you check the price actions of BTC and ETH, a few months back, both of them moved in close concordance. When BTC fell, so did ETH, and when the former rose, the other did too. But recently, this link seems to have broken. Bitcoin has been struggling to move past $60k for over a week now. And while other altcoins are getting affected by this and falling as BTC does, ETH seems to be in a different mood. It has been rising non-stop with minor to no consolidation in the last two weeks.
In 2021, the ETH price has already risen by 5 times, while BTC has only increased by 50%. This shows the kind of rally Ethereum is in. The new network upgrades and the use of ETH technology in the DeFi and NFT market have also played a role in the substantial increase of its price. Analysis suggests that the price of ETH will reach $10k-$15k by the end of the year. Until now, I was very skeptical of the analysis, but now it seems that a few more rallies like this will be enough to push the price even higher.
Very soon, Ethereum will also cross the market cap evaluation of JPMorgan chase at $488 billion. As at the current price, the market cap of ETH is $470 billion.
As ETH moves past $4k, it has now reached the 52-week low of BTC in the last year. Maybe the next year, it will be sitting where BTC is right now. And Bitcoin will be in the millions. It is difficult to say the price where it will be at, but it’s easy to say it won’t be where it is at. This is because ETH’s use is rising, and there are a lot of upgrades coming to its network.
Another important aspect of this is the increased demand and reducing supply of Eth. With the burning of tokens and more people holding their coins, it is evident that the price of ETH is going to rise. According to a report, the supply of ETH will be even less than BTC by the end of the year. And that is even bigger news for investors.
What are your thoughts on the huge price increase of Ethereum in the last few weeks? And do you think we will be able to reach $5k by the end of May? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.