Bitcoin Soars to $50,000 as Ethereum Eyes Performance Surge

9 days ago

You can also read this news on COINTURK NEWS: Bitcoin Soars to $50,000 as Ethereum Eyes Performance Surge

As the leading cryptocurrency, Bitcoin (BTC) climbed to its highest level of $50,000 this week, all eyes turned to Bitcoin. Ethereum (ETH) has lagged behind up to its current position, but various scenarios suggest it could outperform during this bull market cycle based on fundamental factors.

Ethereum Faces Resistance Level

Ethereum reached its 21-month high of $2,700 on January 12 but failed to break this resistance level this week. Meanwhile, Bitcoin hit its highest level in two years. Over a quarter of the leading smart contract platform Ethereum’s supply is now locked in staking platforms, reducing the amount of ETH available for spot transactions or investment.

Furthermore, 0.21% of the ETH supply is being burned annually, further decreasing the available token amount. According to Ultrasound.Money, the Ethereum supply has decreased by 357,148 since the upgrade in September 2022. At current prices, this could mean a supply reduction worth $947 million in less than 18 months. Additionally, the distribution of EIP-4844 in March could significantly reduce layer 2 gas fees, which could likely lead to increased adoption, usage, and transaction volume.

Increasing Demand for Ethereum

According to Kyle Reidhead from Impact3, all indicators point to increased demand for ETH with a decreasing supply. Other industry observers highlight more fundamental points such as the reevaluation of narratives through platforms like EigenLayer. It may not be long before traditional finance discovers Ethereum’s golden features like high yield and decreasing supply. There is also participation from users of Ethereum and dApps like Farcaster.

Additionally, Federal Reserve interest rate cuts could make holding cash less attractive, potentially leading to a rise in cryptocurrencies offering higher returns. This situation also coincides with Coinbase’s potential victory against the SEC, alleviating fears related to the company’s own securities announcements.

The post first appeared on COINTURK NEWS: Bitcoin Soars to $50,000 as Ethereum Eyes Performance Surge
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