The prediction that Bitcoin will reach $100,000 now seems less likely as the flagship cryptocurrency has fallen to $49,000 at the moment.
As Bitcoin’s slump continues, Ethereum, the largest altcoin, is gaining new uses. It is expected that crypto players will switch to ETH to hedge against the Bitcoin price drop.
The ETH/BTC pair increased over 11% to reach 0.0835, hitting a three-year high.
What makes the Ether rally against Bitcoin different is the rally against the USD, which fell by about 15%. The overall market drop was due to a market-wide sell-off as Bitcoin fell by about 22%.
The market share of ETH continued to increase this year as the ecosystem around ETH continues to grow and the number of new coins is decreasing. This could be seen as a reason for the good performance measured against Bitcoin this year. In addition, ETH is now expanding its market position to about 22%.
Previously, Ethereum had risen sharply in the last quarter of 2021, not only because of the bull market in November but also because of the London hard fork upgrade which burned a massive number of ETH tokens and reduced the supply also the market.
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Monday, December 6, 2021