The narrative has been very similar for the market’s top-two digital assets over the past couple of months. Relishing the scale of bullish momentum in the market, Bitcoin investors turned up the buying pressure over the last 24-hours after Tesla announced its 7.7% capital reserve investment. In fact, just a few hours later, Bitcoin[1] climbed to touch a new high above $48,000, with Ethereum also breaching the much-anticipated $1,800-mark.
With both crypto-assets undergoing minor corrections at press time, the question is a pertinent one. Is Ethereum more likely to outperform its counterpart?
Ethereum v. Bitcoin – Position comparison from previous ATH
Source: Trading View
The attached chart highlights the growth percentage recorded by both Bitcoin and Ethereum since their previous all-time high values. As can be observed, Bitcoin’s value has doubled since crossing $20,000, registering a surge of 133%, at press time.
On the other hand, Ethereum has grown by 28% after breaching its 2018 high of $1,440. Here, an argument can be made that Ethereum has a higher gap to fill in terms of price discovery considering it is also reveling at an ATH range. The complexion of Ethereum’s ecosystem has evolved over the last 3 years as well.
Finally, Ethereum is currently in the process of shifting its network to a Proof-of-Stake system, one where more than $5 billion in ETH[2] have been staked.
Like Bitcoin, Ethereum too has registered high exchange outflows over the past 12 months, indicating that its users are holding the asset with a long-term perspective in mind. The growth of ETH 2.0 is also another bright sign of extended trust in the world’s largest altcoin project.
Institutions could be the next jump for ETH
With the launch of CME ETH Futures, the window to institutional exposure has
