Digital Assets Beat Traditional Assets by a Wide Margin & Ethereum Outperforms Bitcoin

Ethereum’s incredible progress this year makes it hard to be short on ETH.

In 2020 to date, Bitcoin has seen a positive performance of 80% and Ethereum 217%.

With these gains, digital currencies are leading this year, with both the top digital assets outperforming traditional asset classes, that too by a wide margin.

image2
Source: TradeBlock

Clearly, Ether has enjoyed much higher performance than Bitcoin, just yesterday it also caught up with BTC’s latest move. ETH went to $420 and is currently trading around this level only.

The realized price of Ether, the average price for each ETH at the time it last moved on-chain, actually hit a 21-month high, at $246, a level not seen since January 2019. In the past six months, it has increased by 21%.

According to one quant trader, benign bearish on the network, which is the center of the fast-growing DeFi and stablecoin space, just doesn't make sense.

“I get not being long ETH, but I don’t get why anyone would be short ETH against what is to me the single most important protocol upgrade and token incentives change since the beginning of Ethereum in 2014,” said Qiao Wang.

Outperforming Bitcoin

It has been because of DeFi and stablecoins crazy growth this year, which saw Ethereum beating Bitcoin not just in terms of price but also in transaction volume as it transacted two times more value than BTC daily.

“Ethereum’s progress has been so incredible that it will likely becomes the first public blockchain ever to settle $1 trillion in a year,” said Ryan Watkins, a researcher at Messari.

image1
Source: Messari

Much of this growing activity has been because of stablecoins, especially ERC-20 USDT, with Tether alone doing more volume daily, nearly double, than Bitcoin.

When it comes to DeFi, Yield farming phenomena and decentralized exchanges (DEX) play a big part. DEXs now comprise 13.6% of total volumes from all exchanges (CEX+DEX). Uniswap and Curve did more than $20 billion in combined volume last month, resulting in a boom in on-chain liquidity on Ethereum.

However, as Ethereum becomes the “epicenter of crypto finance,” it comes at the cost of extremely high fees pricing out retail users and pushing some apps out too.

And this allows alternative platforms to gain attention and adoption. According to Messari, 5 layer 1 alternatives raised a combined $138 million over the quarter.

“The next 12 months could come to define the smart contract market as almost every high-profile Ethereum competitor will be live by year-end. And these networks are barrelling towards a head-to-head battle with Ethereum’s bevy Layer-2 scaling solutions,” said Wilson Withiam of Messari.

Ethereum (ETH) Live Price

1 ETH/USD =492.8682 change ~ -17.29

Coin Market Cap

55.98 Billion

24 Hour Volume

24.79 Billion

24 Hour Change

-17.29

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,274FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today