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Bitcoin (BTC) – for the longest time – has lorded over the cryptocurrency space despite past debacles. Hot on its trail, however, is an equally popular digital currency known as Ether (ETH) from the Ethereum network. They’re just two of the most recognizable cryptos in the market as of late, though it has to be highlighted that these two are very much different in several ways. In line with this, the momentum of these two digital currencies can be looked over in the matter of their all-time high-recovering capabilities.
Bitcoin v Ethereum
It is pretty much evident right now that both bitcoin and Ethereum are encountering what is called a high demand post-recovery since their prices are currently grasping to those higher levels. Nonetheless, it is the latter that is likely facilitating a higher demand, not to mention that there’s also a slump in its supply.
CEO of the crypto data-gathering site CryptoQuant – Ki-Young Ju – commented about the Ethereum network as he described its sell-side liquidity predicament as intense. Also, the network’s exchange known as NetFlow has remained on the negative.
As for bitcoin, its exchange reserves’ southbound path came to a complete stop in May. Such an event translates to the amount of Ethereum that are currently on exchanges that have surged, as this too is being experienced by BTC. Further, Young Ju added that the probability of Ethereum hitting its ATH levels first is pretty high.
BTC lagging behind
If recovery is anything to go by, bitcoin is lagging behind Ethereum with a figure of 52.67 percent in the morning of August 19. This is in comparison to ETH’s 76.68 percent. Sure, the statistics heavily favored Ethereum, but it’s worth noting that both of them exhibited a robust structural correlation after May 19 of this year.
Derivative traders, on the other hand, are expectant that Ethereum will be moving a lot quicker in the coming days. Coinbase’s Skew is suggestive that Ethereum-bitcoin’s so-called 6M Volatility spread is on the rise. Such is indicative that one should expect that ether to be more volatile. With that in mind, this also means that this could result in stronger corrections. Further, Ethereum is likely to have a slight upper hand provided that the trend maintains a bullish state.
Ethereum making it easier
It’s a known fact that the Ethereum network supports the development of and allows for the creation of new applications on its infrastructure. This feature of the network would potentially make it a more valuable resource in the long run.
Ether is the one utilized to pay for such transactions as this is very much evident with people getting into that non-fungible token hype. This resulted in an increased usage rate for ETH as it surpassed that of bitcoin’s in the last 12 months.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
