Ether surpasses Bitcoin this year after it launched its own Ethereum network token in 2015 as an alternative to the earliest cryptocurrency.
While both fell from their all-time highs set earlier this month, Ether has risen about 530% since December, doubling the value of Bitcoin and widening the performance gap between the two by more than 400%. According to data from CoinMarketCap.com, Bitcoin’s market value is still around $1.1 trillion, almost twice that of Ether.
Difference Between Ether and Bitcoin
The main difference between Ether and Bitcoin is that the former has much greater relevance to further growth segments of crypto, including DeFi, non-financial tokens, and the so-called metaverse, said Stephen Ouellette, CEO and co-founder of crypto platform FRNT Financial Co., Ltd.
He said the current BTC trading window shows that it is more focused on linking assets to global currency trends, inflation hedges, and others. At least in terms of current market perception, ETH higher crypto sub-sector correlates with BTC’s growth.
Ether is at the heart of the Ethereum network. It is gaining popularity this year as the dominant blockchain used in thousands of decentralized applications. It also received faster and more scalable updates.
Rally Caused Meme Coin Value Rise
The token is heading towards all-time highs again, a rally that was canceled at the end of last week amid widespread confusion over risk assets. However, after rebounding from the 50-day moving average on Monday, Ether moved higher, gaining around 13% since Friday.
The so-called meme coins, Shiba Inu and Dogecoin rose in value amidst the rally of Ether. According to Coinmarketcap.com, Shiba is up 26% and Dogecoin is up 3.1% in the last 24 hours. Kraken listed Shiba for trading on Tuesday.
Ether cut profits after gaining 4.9% to around $4,671 on Tuesday. Investors bought about $23 million of Ether last week, marking their fifth straight week of inflows, according to data gathered by digital asset manager CoinShares.
Ether has outperformed Bitcoin for four months of the year. The end of November will be its second straight month of outperformance. Currently, one Ether is equivalent to about 8% of Bitcoin.
Bitcoin fell about 1.9% on Tuesday to $57,221, hitting an all-time high of nearly $69,000 earlier this month.
Matt Mayley, chief market strategist at Miller Tabak & Co., expressed his concern that this step might be too soon. In contrast to that, Ethereum outperformed Bitcoin last month. Currently, Ether has become the new cryptocurrency for most investors.
He added that if Bitcoin stays below mid-November and April highs and crosses mid-November highs, it will show that Ether has come to be the new cryptocurrency favored by most investors.
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