Real Vision CEO Raoul Pal is placing his bets on leading altcoin Ethereum and its rival Solana in the ongoing bull run. Additionally, Pal discusses the changing dynamic of Bitcoin’s correlation with Ethereum.
The correlation between BTC and ETH has dropped!
Real Vision CEO Raoul Pal believes that unlike other altcoins, the price action of Ethereum (ETH) is not determined too much by Bitcoin (BTC). He is also placing his bets on the price increase of Solana (SOL). Pal also discusses Bitcoin’s correlation with ETH and other altcoins here. The economist says ETH has a huge ecosystem of its own. He also notes that it acts quite independently of BTC’s performance.
The correlation between BTC and ETH dropped after the Merge in September 2022 and the Shanghai fork in April 2023. In fact, the correlation declined especially after the Shanghai hard-fork. In the days immediately following the April update, Coinbase published a report highlighting this trend. The report noted that the correlation coefficient between daily Bitcoin and Ether returns decreased from 0.95 to 0.82 in 30 days.
Leading altcoin acts independently of Bitcoin
Ethereum’s independence from Bitcoin is also closely related to the type of institutions investing in ETH. Pal says many institutional investors like assets that yield returns. He also adds that the leading altcoin ETH also offers such a thing. However, it is necessary to underline here the recent decreasing returns of Ethereum.
It fell to 3.5%, the lowest level in the last 10 months, Bloomberg recently reported. It is also well below the recent peak of over 8%. “The rise in staking has diminished the attractiveness of Ethereum from a ‘yield’ perspective, particularly against the backdrop of rising returns on traditional financial assets,” the report said, citing a recent JPMorgan Chase note. It is said.
ETH was trading at $1,813.50 at the time of writing. Additionally, it is up 18% in two weeks. Meanwhile, BTC was trading at $34,302 at the same time. Additionally, it is up 28% in two weeks.
This altcoin was once famous for its outages, but…
Raoul Pal bets on Solana among all altcoins. He states that he chose Solana because of its greater security and speed. cryptokoin.comAs you follow from , in September 2021, the network fell victim to a devastating bot attack. In May 2022, another bot invasion hit the network. A reconciliation error caused by an error led to another outage in June 2022. In February 2023, performance degradation issues caused operations to be disrupted.
However, the network has now come a long way due to the implementation of priority charges. In the July report, Solana claimed that he had not experienced any outages since February. In fact, Solana’s Head of Developer Relations, Jacob Creech, recently announced a $400,000 bounty for anyone who can shut down the network.
Pal said he purchased a significant amount of SOL during the June-December 2022 period before the FTX debacle. However, his recent performance will not keep him away. The altcoin was changing hands at $34.74 at press time, an increase of nearly 65% in two weeks.
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