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Given the fact that a vast number of ETH “killers” and rivals are gaining traction in the first quarter of 2021, demand for ETH is at an all-time peak, according to activity on top spot exchanges. According to Cryptoquant info, all exchange reserves have reached ATL; reserves have been steadily declining over the past two weeks.
According to the above table, only about 25% of circulating ETH is actually on exchanges, suggesting a supply shock. This decrease in ETH reserves may be due in part to increased staking. The remainder section can be due to growing demand for DeFi tokens and altcoins that do not necessarily rate in the top 20 altcoins. Whales with more than 10,000 ETH control more than 70% of the circulating stock of ETH.
There are currently no signs suggesting that ETH has hit its height. On-chain data from intotheblock shows that retail investor momentum is bullish; the frequent uptrend is intact. ETH exchange balances have touched fresh all-time lows many times in the last week, and financing is officially neutral. ETH is actually undervalued even over $1600 based on these metrics and on-chain analysis. However, given the lack of signs at the current price stage, it is possible that the commodity would not reach a new high.
According to influencers like @AltcoinSherpa on crypto Twitter, it is likely that altcoins will pump in the following weeks and Bitcoin dominance is not the ideal gauge that it was in the previous market cycles. The current ETH/BTC price action suggests that the price may break past the 0.04 level soon, based on price data from coinmarketcap.com.
In contrast to Bitcoin’s supremacy, the market behaviour on the map indicates that the commodity is a stronger indicator of the launch of an alt rally. Latest discussions around Cardano appearing as a ‘ETH murderer’ have made enough headlines to be heard, and it is crucial to determine whether ADA will lead the alt rally this time around.
When the two are measured in terms of size or market capitalisation, though, ETH comes out on top. Furthermore, the outflow of ETH from exchanges has no discernible association with Cardano. The Shelly update, which emerged as a significant development achievement for the project and increased demand for ADA on top spot exchanges, can be traced to Cardano’s bullish market behaviour.
If it is an ETH killer or not, Cardano does not have enough leverage in terms of culture and liquidity to control the alt rally at the moment. Furthermore, ETH’s bullish breakout over 0.04 BTC is expected to pave the way for an alt rally.