Source: Adobe / onnarong
Ethereum (ETH) – the second most valuable crypto asset by market capitalization – has recently lagged behind Bitcoin (BTC) in terms of price. And judging by some metrics, it seems that Ethereum users are looking for their activity elsewhere in the chain as well.
Over the past 30 days, the price of Ethereum’s native ETH token has risen 6% to $ 3,457 at 13:19 UTC.
Monthly profit compares to a stronger 30-day 27% increase for BTC, which brought the price of the number one cryptocurrency to over $ 57,000, and that’s a relatively short distance away (it’s still an 11% decrease) its all time high of just over $ 64,000.
ETH, meanwhile, is still around 21% below its all-time high of over $ 4,300, which it hit in May, with significant technical resistance around the $ 4,000 mark still standing in the way.
However, ETH is still outperforming BTC in a larger timeframe as it has increased more than 800% in one year, while Bitcoin has increased “only” 400%.
ETH price chart:
In both cases, the relatively lower prices for ETH this month follow a warning from Nikolaos Panigirtzoglou, a global market strategist at the investment bank, last month JP Morgan, who said in September that in his opinion the “fair value” of ETH is only around $ 1,500 based on the fundamentals of the network.
“We look at the hashrate and the number of unique addresses to understand the value of Ethereum. We are struggling to rise above 1,500 USD, “Panigirtzoglou was quoted by Insider at the time.
And while the price of Bitcoin has been lagging lately, usage of the Ethereum network also appears to have declined. According to data from BitInfoCharts, the number of active addresses on Ethereum has fallen from more than 1.05 million addresses during the market peak in May this year to just over 800,000 addresses today. Although there is a similar decline in activity on the Bitcoin network, Bitcoin has seen a stronger increase than Ethereum since July.
In the meantime, the network’s “buzz” factor on social media also seems to have subsided. Looking at the number of tweets mentioning Ethereum published each day, the data from BitInfoCharts shows that we are close to the lowest values in the last 6 months.
If you compare this with Bitcoin, a difference becomes apparent, especially in the last few weeks: the number of tweets in which Bitcoin is mentioned has increased so far in October, while mentions of Ethereum have decreased.
Meanwhile, interest in Google also seems to be declining:
Another important metric for a smart contract platform like Ethereum is the Total Value Locked (TVL) on the platform. In the US, TVL has risen by more than 60% since July, but only 5% in ETH terms.
For example, rival blockchain network Solana (SOL), backed by major investors, has seen the value of this platform grow exponentially since the summer, rising from just $ 631 million on July 1 to $ 11.45 billion today. In SOL considerations, TVL has increased nearly 340% since July.
From a price point of view, however, some signs point in a positive direction for ETH, for example among on-chain researchers feeling say today that ETH continues to switch from exchanges to “non-exchanges” addresses.
“The relationship between the two has shown that it is closely tied to price, and that increase in the ratio continues to bode well for bulls,” the analyst said, sharing a screenshot showing how tokens compare to “non- Exchanges “move whales.”
As reported yesterday, digital asset investment products recorded a total inflow of $ 226 million, bringing the inflow in 8 weeks to $ 638 million each CoinShares Data. Investments in BTC reached $ 255 million, compared to $ 69 million a week earlier, while ETH saw outflows of nearly $ 14 million, compared to inflows of $ 20 million a week earlier. At the same time, SOL recorded inflows of $ 12.5 million.
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