Ethereum’s performance throughout its life has made it a popular cryptocurrency. The cryptocurrency’s performance against Bitcoin is even better. Investors have seen huge returns from the original cryptocurrency. The fact that Ethereum outperformed Bitcoin at all turns gives Ethereum even greater credibility.
Ethereum’s outperformance with bitcoin seems not to be slowing. Throughout 2021, ETH had been the top performer of the two and this has carried on into the new year as Ethereum rally coupled with the fact that the long-awaited ‘Merge’ is drawing closer has once again put the altcoin ahead of its top rival in the space.
Ethereum rallies 16%
Ethereum has had a great week. Altcoin’s Monday rally had solidified its position at the $3,000 level. ETH has seen a nearly 16% gain from its recent rally over the last week. This makes this one of the most profitable weeks in the history of altcoin. The altcoin traded above $3K in the early hours Tuesday morning.
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This week has seen the Ethereum outperformance in bitcoin. Bitcoin has rallied 8.4% over the last week, while Ethereum rose as high as 16% during the same period. Similar trends were seen last year when Ethereum’s year-over-year returns soared to over 300%, while bitcoin held steady at under 2000%.
BTC’s performance in downtrends is better than ETH. ETH suffered a 17% decline during this downtrend, but BTC was only down 7%. While the market is still on its back, the latter has continued to resist the bears.
Why is ETH outperforming
It is easy to attribute the recent Ethereum performance to upgrades. Since a long time, the upgrade will move the network to proof of stake. This makes it more energy efficient and quicker than bitcoin. The final stage of the move will be launched by a recent upgrade, which is expected to occur in mid-2022.
ETH price breaks $3k | Source: ETHUSD on TradingView.com
‘The Merge’ as it is called has been deployed on the last testnet known as the Kiln testnet which is now running entirely on proof of stake. This is a sign that the ETH mainnet will perform the merge.
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This has led to an increased interest in Ethereum. This has led to an increase in interest in Ethereum. This has led to a record number of validators on the staking queue.
The value of this digital asset will continue to rise as the upgrade nears. ETH currently trades at $3,007, as of this writing.
Featured image taken from Investopedia. Chart from TradingView.com