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Ethereum’s Growth Outpaces Bitcoin
According to reports, Ethereum has demonstrated higher growth than Bitcoin this year, attributed to speculations regarding a possible spot Ethereum ETF. The leading altcoin has recorded positive traction year-to-date (YTD) with speculations on the next wave of exchange-traded funds.
Comparative Analysis
Ethereum has soared 28% this year, outperforming Bitcoin which has climbed 21%. This marks a shift from previous time frames when BTC was leading in this metric. Last year, Bitcoin recorded a 158% growth based on renewed institutional inflow, while Ethereum trailed behind with an 80% increase.
Current Market Situation
At present, Ethereum is trading at $2,918, reflecting a 6% rise in the last seven days and an 18% growth compared to the previous month. The asset breached the $3,000 mark on Feb 20 before a slight market correction in early trading hours. This rise marks the highest point since April 2022, before the fall of the Terra Network and the subsequent implosion of FTX.
Market Influences
The bear market with falling asset prices in 2022 was influenced by industry events and broader macroeconomic factors, resulting in the values of Bitcoin and Ethereum slipping by more than 55%.
Speculations of Ethereum ETF Approval
Several analysts have predicted a change in direction for Ethereum with speculations of a spot Ethereum ETF approval by the United States Securities and Exchange Commission (SEC). This follows the success of Bitcoin before and after the Bitcoin ETF approval, indicating a potential market shift for Ethereum.
Institutional Interest
Institutional investors have turned their attention to an Ethereum ETF, with several firms filing applications with the SEC. This indicates a higher institutional drive surrounding the cryptocurrency as investors see a new investment window with the potential approval of an ETF for Ethereum.
Market Projections
Traders see Ethereum’s high potential based on its staking feature, which allows investors to earn yield. The growing smart contracts ecosystem on the chain also boosts positive sentiment towards Ethereum, with projections of Ethereum continuing to outperform Bitcoin in the coming months, especially with the potential ETF approval looming closer in the near future.
Ian is a cryptocurrency enthusiast blending humor with professionalism. With an engineering background and a storyteller's heart, he simplifies the blockchain world with sharp analysis and a touch of wit. At Cryptowire, he brings his unique perspective to make digital financial innovation accessible to all.
