The two most valuable assets in the cryptocurrency world bitcoin and EthereumIt is called Gold (BTC) and Silver (ETH) by many experts. But will Ethereum remain silver in a market where Bitcoin is acting like gold?
The most followed and most valuable asset of the crypto money world is undoubtedly Bitcoin and this situation has been going on for a very long time. For example, the recent rise in Bitcoin’s price has received a “positive” response in the form of a rise in prices in the cryptocurrency world in general. This situation is actually not new. If you wish, let’s discuss an analysis on Ethereum.
When it comes to the Bitcoin rally, not expecting a price increase from ETH is generally an unlikely scenario, but it should be remembered that this is not the only factor affecting the price development in the Ethereum network. For example, the proliferation of dAPPs, NFTs, DEXs and many other in-network developments and applications are very important factors that increase the value of the Ethereum network.
In addition to the positive effect of the current rally in Bitcoin on the price of ETH, these developments within the Ethereum network may also cause the price of ETH to increase.
ETH, which follows the price of Bitcoin, did not remain silent in the Bitcoin rally after being consolidated for a long time and increased its price to the level of $ 3800. According to experts, it’s only a matter of time before the Ethereum network shows a “major” development. Experts interpret this interpretation due to the increase in demand for applications and developments in the Ethereum blockchain, which we have just mentioned. Especially in the last few months, there has been a significant increase in demand for Layer-2 protocols for Ethereum block space.
Frank Holmes, CEO and CIO of US Global Investors and Chairman of HIVE Blockchain, expressed his views on Ethereum. Drawing attention to the relationship between BTC and ETH prices, Holmes compared the relationship between these two crypto assets to that of gold and silver.
When gold goes to the 50-day moving average and rises between 15-20 percent, silver tends to follow its movements and rise close to 30%. Cryptocurrency The situation seems to work similarly in the world. First of all, Bitcoin enters an uptrend, while Ethereum follows its trend and tries to achieve a similar growth.
According to Holmes, it is a very important point that the developments in the Ethereum network are much more than Bitcoin. This situation can be likened to the fact that the areas where silver is demanded are wider than gold.
As a result, the fundamental principle of “supply and demand” can be the ultimate and determining factor in ETH prices. Ethereum is set to transition from a proof-of-work protocol to proof-of-stake next year. This development means that miners will no longer be mining in a way that consumes much energy.
Ethereum will use “staking” to secure the blockchain. According to many experts, this will increase the value of ETH. The idea of regular income guaranteed by staking and the relatively fast payback period available; Increasing demand for ETH can naturally result in an increase in price.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.