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Though Ethereum volumes are the on spot markets, the crypto-top market’s altcoin is also reaching new highs, followed by heavy demand and uncertainty. Since the two currencies are closely linked, the price of Bitcoin has been critical to the movement in the price of Ethereum.
A look at the association between the two properties is also important to watch.
With Bitcoin priced about $54,000 at press time and on-chain sentiment found to be bearish, the rally for Bitcoin may have stopped or at least slowed. Though it seemed impossible a few weeks ago, the number one cryptocurrency could end April on a low, below its price level from a month ago.
According to Skew results, after four profitable years, HODLers have experienced one quarter of unrealised losses. When contrasting the top two properties, both cryptocurrencies have different social opinion and network effects from technology.
However, as compared to the chances of meme-coin protests, Bitcoin’s network effects have not seen the expected impact this portion. Since Ethereum has historically driven altcoin rallies, a decline in Bitcoin’s price was supposed to help ETH’s rally. Furthermore, the expansion of DeFi ventures and the growing number of ETH transactions across exchanges has increased its market capitalisation to more than $320 billion.
The scaling and network congestion issues may be addressed soon by layer 2 solutions, but it is not the only factor influencing ETH demand. Cryptocurrency The prospect of ETH flipping BTC has piqued the imagination of both HODLers and organisations on Twitter.
Though Tesla’s decision to sell a portion of its Bitcoin assets made news, Grayscale’s ETH holdings have remained relatively unchanged. After a price increase in less than 30 days, ETH holdings have remained relatively unchanged.
According to on-chain data from IntoTheBlock, the concentration of big HODLers is also growing, indicating a bullish sentiment among traders. Since the need for layer 2 solutions compliant with the EVM has reduced competitiveness among top DeFi projects and ETH, ETH is currently leading the bull run and heading to a higher market capitalisation.