Ethereum Institutional Demand Rises, Will ETH Put BTC Out of Crypto Spotlight?
Post the successful implementation of the Shanghai upgrade, Ethereum (ETH) has delivered a strong move. The ETH price has surged past $2,100 levels gaining more than 10% over the last 24 hours. Ethereum has been posing strong competition to Bitcoin (BTC) which has grabbed all the limelight so far in 2023.
By gaining more than 14% on the weekly chart, Ethereum has outstripped Bitcoin which has gained 10% during the same period. It is clear that ETH is trying to close the gap with BTC which is already up by more than 80% since the start of the year. On the other hand, ETH has gained close to 77% now since the beginning of the year.
The implementation of the Shapella (Shanghai + Capella) upgrade has allowed ETH investors to withdraw their staked coins. Many have argued that it could lead to selling pressure on ETH, however, the case has been completely opposite in the 36 hours since the launch of the Shanghai hardfork.
Crypto fund manager Digital Asset Capital Management wrote: The impact of allowing the withdrawal of staking rewards and initial capital “is yet to be seen”, adding it “will be watching both withdrawal and selling data closely on-chain to see if there is resulting sell-pressure.”
Institutional Demand for Ethereum
As the Ethereum blockchain continues to make progress, the demand for its native ETH cryptocurrency continues to grow. Speaking to Bloomberg, Annabelle Huang, managing partner at crypto lender Amber Group, said:
“We’re already seeing more institutional demand when it comes to Ethereum now that they can stake, unstake, more instant liquidity”.
Crypto analysts currently remain divided over whether Etheruem (ETH) can continue its current price rally in the market. On the other hand, the macro factors will continue to have an influence on the crypto space.“Personally, I don’t think we are out of the woods yet,” Amber’s Huang said.
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
