The market is betting which project will be the Ethereum-killer. Solana, Terra, Avax and Cardano have been performing exceptionally well recently. Investors believe they will outpace the "old" Ethereum in the race of scalability of DeFi, bringing crypto to mainstream adoption.
Yet, Ethereum doesn't seem to be giving up the throne anytime soon. Total value locked in DeFi protocols recently hit a new all-time high, and that's mainly due to protocols running on the Ethereum network.
Looking at the ETHBTC chart, it's clear how Ethereum is building a solid bullish momentum. On a higher time frame and on such a large time scale, moves like this happen for a reason. Ethereum has just become more scarce (following the EIP-1559 update), making it close the gap slightly with Bitcoin.
Supply and demand is always the main driver for price and a supply shrink coupled with growing adoption push immediately the price up. Not to mention the increasing number of coins staked in ETH 2.0.
Solana and other protocols are still good investment options that will likely outperform both Ethereum and Bitcoin. But they also carry higher volatility. From a risk-adjusted perspective, Ethereum is now flipping Bitcoin. Institutional investors have already realised that, so more smart money is likely to flow into ETH. Just wait for the next big headline.
Yet, Ethereum doesn't seem to be giving up the throne anytime soon. Total value locked in DeFi protocols recently hit a new all-time high, and that's mainly due to protocols running on the Ethereum network.
Looking at the ETHBTC chart, it's clear how Ethereum is building a solid bullish momentum. On a higher time frame and on such a large time scale, moves like this happen for a reason. Ethereum has just become more scarce (following the EIP-1559 update), making it close the gap slightly with Bitcoin.
Supply and demand is always the main driver for price and a supply shrink coupled with growing adoption push immediately the price up. Not to mention the increasing number of coins staked in ETH 2.0.
Solana and other protocols are still good investment options that will likely outperform both Ethereum and Bitcoin. But they also carry higher volatility. From a risk-adjusted perspective, Ethereum is now flipping Bitcoin. Institutional investors have already realised that, so more smart money is likely to flow into ETH. Just wait for the next big headline.
