It was just a matter of time before Ethereum could shine again.
With Bitcoin cooling off, that was the perfect scenario for Altcoins and Ethereum to run.
In January, Bitcoin has mostly traded on the downside, while Ethereum has quietly but steadily outperformed. When many DeFi-related coins double or triple in price in a matter of days, Ethereum meager 60% increase over a year may look like a weak performance. But what should be noted, more than the scale, is the consistency. Probably a key factor is a growing demand for Ether, which is facing a shrinking available supply.
DeFi protocols are booming. On the one hand, investors need Ether to cover the transaction fees, which are becoming increasingly expensive due to the network’s congestion. On the other, more Ether are either locked in smart-contract, farming yield, providing liquidity, or supporting the Ethereum 2.0 network’s development.
Bitcoin stopped at the resistance, and Ethereum rebounding on the support could buy a bit more time for the Alt-party.
But gradually take some profit on the way up, as the music can stop at any time when Bitcoin takes centre stage again.
With Bitcoin cooling off, that was the perfect scenario for Altcoins and Ethereum to run.
In January, Bitcoin has mostly traded on the downside, while Ethereum has quietly but steadily outperformed. When many DeFi-related coins double or triple in price in a matter of days, Ethereum meager 60% increase over a year may look like a weak performance. But what should be noted, more than the scale, is the consistency. Probably a key factor is a growing demand for Ether, which is facing a shrinking available supply.
DeFi protocols are booming. On the one hand, investors need Ether to cover the transaction fees, which are becoming increasingly expensive due to the network’s congestion. On the other, more Ether are either locked in smart-contract, farming yield, providing liquidity, or supporting the Ethereum 2.0 network’s development.
Bitcoin stopped at the resistance, and Ethereum rebounding on the support could buy a bit more time for the Alt-party.
But gradually take some profit on the way up, as the music can stop at any time when Bitcoin takes centre stage again.