According to the latest statistics provided by Bloomberg, Ethereum has managed to surpass Bitcoin’s gains this year. While Bitcoin still stays the strongest cryptocurrency, it has only doubled in value from 2020. ETH rose 530%, exceeding BTC by more than 400%.
Experts attribute this outrun to a more flexible utilization that Ether has over Bitcoin. While BTC serves predominantly as an asset and store of value, ETH’s use ranges from NFTs and DeFi to the newly established Metaverse.
“The current BTC trading window seems to associate the asset more with global currency trends, inflation hedges, etc.,” says Stephane Ouellette, FRNT Financial Inc. CEO, adding: “While ETH has [...] higher correlations with the growth of crypto sub-sectors.”
In the past few days, Bitcoin has been experiencing a dip, after falling from a 7-week high. ETH, on the other hand, has been on a 50-day growing streak and has gained 13% since last Friday, culminating with a 4.9% rise this Tuesday.
Chief market strategist for Miller Tabak + Co., Matt Maley, states that in case of a continuous ETH uptrend, the competitor cryptocurrency might become the “asset of choice” for investors, given that Bitcoin does not surpass its November’s ATH any time soon. He adds, however, that he does not want to “get too excited about this move too quickly.”
At the current rate of $4,671 per Ether, the currency makes up for about 8% of Bitcoin’s value. Its gaining upon BTC, however, might provide traders with higher returns in the near future.