Crypto-space was dominated by Bitcoin and Ethereum for a few years, with the king coin often taking center stage during that period. The past few weeks and months, however, have seen the crypto-space screen change completely. For starters, Ethereum seems to be constantly decoupling from Bitcoin, having started to forge a new path for itself in the price lists.
On a podcast In recent years, Su Zhu and Kyle Davies, founders of the cryptocurrency hedge fund Three Arrows Capital, reiterated their optimistic position on the flagship altcoin of the market. Commenting on his current business strategy with respect to Ethereum, Su Zhu said:
We try to be as intuitive and macro as possible… This is in a scenario where Ether probably had his tokenomics upgrades stronger as a base of money that it has had in its history.
The dominance of the Bitcoin market has witnessed a sharp decline since April, with it translating into a benefit for Ethereum and the rest of the market’s altcoins. Highlighting Ethereum’s growing acclaim, Zhu added,
In a scenario of rise in emerging markets, ETH is already overtaking Bitcoin as people’s first purchase. In fact, DOGE is also overtaking Bitcoin on some of these access routes. Therefore, this environment is incredibly pessimistic for the Bitcoin domain.
There are a number of reasons why ETH has been able to reverse BTC lately. First, retail investors gradually began to lean more towards Ethereum and began to resonate with its intermittent value, as opposed to Bitcoin. Second, institutions want to keep what people have and, therefore, are switching to Ethereum as well.
Third, Bitcoin has just completed its trajectory towards the north and is in the process of correction. Ethereum performed at the right time and managed to attract the attention of the community by registering consecutive HTAs in recent weeks.
Shedding light on what to expect from the alt in the coming days, Davies commented:
Before something reaches its highest point again, especially after a big flush, there is always a question of whether this is a dead cat jump. People don’t realize this until you start breaking all records.
He concluded by stating,
For ETH now, when people wake up, they will charge. Whenever we are looking for ATHs. It gets me excited.
Interestingly, a recent analysis highlighted that ETH may subject itself to a correction and also fall below the $ 3,000 mark, before continuing its upward trajectory. At the time of publication, however, altcoin was trading around the $ 3,758.08 range, despite significant corrections in the past 72 hours.
George Paliani, Head of Growth and Public Relations at CoinsPaid has some opinions regarding the price of ETH as described below:
– Does the increase in Ethereum reflect greater demand? What can it be attributed to? (SMBs)?
Ethereum crypto is the second most popular currency after Bitcoin. The Ethereum protocol remains the first choice for developers when launching DeFi and NTF projects, and its ecosystem is in high demand. In recent months, ETH has gained a lot of momentum and is now experiencing one of its best performances among the biggest in the world of cryptography. Behind this price increase is the trend in the DeFi sector, which mainly uses the Ethereum / VISA protocol including ETH for USDT and NFT hype, also developed mainly on the crypto platform. Therefore, of the SMBs that accept cryptography and work in the digital industry, there is a greater demand for this asset, without a doubt.
– Is Ethereum becoming a transactional alternative (or is it pure speculation)?
I would not say that ETH is becoming a transactional alternative, as its price is still volatile. It is mainly an investment asset.
– Can we offer a Latin American angle to this trend?
In a region where digital assets are viral, Latin America can take advantage of this increase better than the others. In Latin America, we see a broader trend, which can be called “crypto-multiplier”. Exchange rate uncertainties and high, and relatively inaccessible, bank rates are forcing companies (especially smaller ones) to look for alternative ways to complete international transactions. For this reason, the crypto trend represents a viable and accessible option. I believe that cryptocurrencies are much more than just a transaction. The promise of the “crypto-multiplier” effect is that it can represent a driver of growth and opportunity across the region, which may otherwise remain latent.
Source: AMBCrypto and Partners Business