The classic ETH vs BTC rivalry is seeing Ether gain strength over the world’s largest cryptocurrency Bitcoin (BTC). While Bitcoin and Ethereum have been subjected to massive volatility in this market crash, ETH’s on-chain data is once again showing up strength.
Messari’s research analyst Ryan Watkins showed that investors’ interest in Ethereum is higher than that of Bitcoin. The Ethereum volumes have surpassed Bitcoin’s over the last month.
On the other hand, the Ethereum supply at exchanges has dropped further and returned to pre-correction levels seen before the last week’s dumping. The drop in the ETH supply suggests higher demand for crypto which is a bullish indicator.
Also, on-chain data provider Glassnode reports that the supply of ETH in smart contracts remained healthy during this recent correction. The data provider notes:
“Percentage of Ethereum supply locked in smart contracts has remained very healthy, with 23%+ of the supply remaining in contracts throughout the duration of the selloff. Supply on exchanges jumped from 11.13% to 11.75%.”
During the recent market correction last week, the ETH/BTC pair has shown a strong resilience compared to its previous performances. During previous crashes, Ethereum (ETH) has experienced significantly larger drawdowns.
As Glassnode mentions: “As ETH shows resilience to market declines over time vs BTC, it is possible DeFi participants flee to ETH as a strength instead of BTC and stablecoins”.
However, Ethereum (ETH) continues to face strong resistance at $3000 levels. At press time, the ETH price is 4.84% down trading at $2683 with a market cap of $307 billion. There are some major developments ahead to watch for the Ethereum blockchain.
Ethereum founder Vitalik Buterin has suggested an early transition to Ethereum 2.0 Proof-of-Stake (PoS), then the expected timeline. Besides, PoS Ethereum will also reduce the network’s energy consumption by over 90%.
On the other hand, the upcoming London hard fork and EIP-1559 implementation will further reduce the ETH supply and could possibly fuel a surge in the ETH price.
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