Arkham Intelligence says Donald Trump-linked crypto portfolio sold $2.4 million worth of Ethereum. However, according to one analyst, the leading altcoin will outperform Bitcoin. The analyst attributes this move to factors such as deflationary mechanisms and the attractiveness of staking returns.
Donald Trump appears to be selling his ETH
According to Blockchain data that analytics platform Arkham Intelligence has been tracking for months, former President Donald Trump sold 1,075 ETH worth $2.4 million. In this context, Arkham wrote about the sale of altcoins on the social media platform X:
Three weeks ago, after months of accumulating Trump NFT royalties, he began sending ETH to Coinbase. Its highest balance was $4 million. Based on deposits, he has sold 1,075 ETH for $2.4 million so far.
Arkham first detected digital assets it believed belonged to Donald Trump in August. The firm based its findings on financial disclosures the former president made earlier that month.
Leading altcoin will be able to outperform Bitcoin
According to André Dragosch, Head of Research at ETC Group, Ethereum will outperform Bitcoin in 2024. Dragosch points out the relative underperformance of ETH compared to Bitcoin in 2023. He notes that its potential reversal would be fueled by technological advances and Ethereum’s position as a leading smart contract platform. In this context, Dragosch says the following about the leading altcoin:
Ether has underperformed Bitcoin over the past 12 months. However, ETH may outperform Bitcoin over the next 12 months.
The basis for the appreciation of ETH price
In the ETC Group report, Dragosch points to factors that will encourage altcoin price appreciation, including the deflationary “burn mechanism” introduced in Ethereum with the EIP-1559 Improvement Proposal in August 2021. Dragosch predicts that this decrease in ETH supply combined with the attractiveness of ETH staking returns will be effective. In this regard, he states that ETH will perform better than Bitcoin. In this context, the analyst makes the following statement:
Ether’s net supply issuance amounts to minus 1.1% annually, as approximately 1.84% is currently burned annually. Traditional investors may think of staking return as a type of stock dividend, while burn rate can be thought of as a stock buyback return.
Additionally, Dragosch also looks at the 12-month relative performance of ETH and BTC. The analyst says ETH has historically shown a strong mean reversion trend. Dragosch notes that ETH is likely to return to its average relative performance against Bitcoin. Thus, it notes that, with the exception of 2023, the price of the leading altcoin has consistently outperformed Bitcoin since its inception in July 2015.
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