Ethereum’s narrative has transformed, and the cryptocurrency is on fire, with other coins profiting from the upswing. Is it going to be around for a long time?
Several of Ethereum’s main rivals are regaining ground in the crypto bear market as ETH regains its lost position. The prices of so-called “Ethereum killers,” such as Solana, Avalanche, Algorand, Polkadot, and Cardano, which provide identical functionality to Ethereum but do it at a lesser cost, are on the rise.
Solana’s native cryptocurrency, SOL, has gained 11% in the last 24 hours and 36% in the last week, according to CoinMarketCap data. It’s been a lovely week for Avalanche, with AVAX up 10% on the last day and 43% in the last week.
The native cryptos of other blockchains, such as Algorand, Polkadot, and Cardano, have witnessed smaller gains. But they are also on the rise. It’s up roughly 7% today for Algorand’s ALGO and 25% last week. There’s been an 8 percent increase in Polkadot’s DOT in the last 24 hours and an increase of 23 percent in the last week for Cardano’s ADA.
What’s going on here? A rise in the price of ETH could result from the bullish feeling surrounding Ethereum’s impending transition to proof of stake via an update known as “the merge,” which is driving up demand for ETH.
Even amid the bleak crypto winter, Ethereum has recently seen a surge in value. Surging by 50% in the last week and roughly 7% since Monday. A recent rush of activity from the Ethereum developers attempting to combine, including the declaration of a projected completion date of September 19.
Before the announcement of the schedule, ETH was trading at roughly $1,200. Still, it is presently trading above $1,500 for the first time since early June. Crypto-exposed stocks like Coinbase appear to be impacted by rising Bitcoin and Ethereum prices. Despite the crypto exchange recently cutting off 18% of its workers, COIN shares rose by 9% yesterday.
There is some hope for the future, but analysts aren’t sure how long it will last. Based on the recent rally, analyst Marcus Sotiriou of GlobalBlock believes that a temporary price bottom has been reached.
Ethereum’s Relief Rally
According to Sotiriou, the crypto market has seen a “relief rally” since last week’s announcement about the latest inflation numbers. A positive reaction to negative news hints that it may have reached a local bottom. Since the news may have been priced into the market due to fear.
In the wake of the fall of Terra and the bankruptcies of Celsius, Three Arrows, and Voyager Digital, Sotiriou warns that regulation is almost certainly on the way.
Shortly, Sotiriou said, “stringent regulation” could be on its way. Regulators may have been looking for harsh limits on bitcoin because of the collapse of centralized lenders.
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