Why Ethereum’s price is outperforming Bitcoin after Saturday’s crash
Even though the crypto industry as a whole witnessed a major correction on the weekend, Ethereum’s gain/loss ratio stands at a near even +0.3%.
- Analysts believe that if Ethereum can maintain its current support level of $3,900, it could rise and possibly hit a new all-time high very soon.
- A recent study claims that more and more investors are beginning to turn to Ethereum as a long-term store of value (SOV) when compared to Bitcoin.
- Ethereum’s market dominance index (DI) is currently hovering close to the 22% mark for the first time in many months.
Despite the marketwide bloodbath witnessed over the last 72-odd hours, Ethereum (ETH) continued to showcase a high degree of resiliency. The world’s second-largest cryptocurrency by total market capitalization showcased weekly losses of 2.5%. At press time, ETH is trading at a price point of $4,314.
Even after all the volatility, Ethereum has continued to outperform Bitcoin (BTC) recently, with the latter’s market dominance index (DI) dropping as low as 38.7% and the former’s DI growing to 21%. Analysts believe that if bulls can keep ETH’s price above the $3,900 range, then a new all-time high of $4,900 or more could be on the cards. Conversely, if the price target cannot be maintained, then a dip to $3,400 may be witnessed.
Since December 4, a growing chorus of voices suggests that investors are now beginning to view ETH as a hedge against Bitcoin’s volatility. A recently published study noted that the ETH/BTC pair has performed remarkably well despite BTC/USDT facing immense turbulence in recent weeks. Providing his take on the matter, Lukas Enzersdorfer-Konrad, chief product officer at Bitpanda, was quoted as saying:
“The number of active addresses on the network continues to climb while the net issuance of ETH continues to fall, which might be the main reason for its rapid rise.”
Major hot wallet hosted on the Ethereum blockchain hacked
As per reports, crypto exchange BitMart revealed that it had been on the receiving end of a $200 million hack that emanated from a compromised hot wallet hosted on the Ethereum and Binance Smart Chain (BSC) blockchains. Identified by blockchain security firm PeckShield, the firm noted that the origins of the attack can be traced back to a $100 million transfer that took place on the Ethereum blockchain followed by another concurrent hack that saw $96 million worth of the exchange’s BSC reserves siphoned off.
In all, it is estimated that the hackers had their way with more than 20 tokens, including a host of prominent altcoins such as Binance Coin, SafeMoon and BowsCoin alongside meme-currencies such as BabyDoge, Floki and Moonshot.
Disclosure: The author owns a range of cryptocurrencies at the time of writing