April 11, 2024 2:17 PM | 2 minute read |
Benzinga Let's see how Ethereum The world's second largest cryptocurrency (CRYPTO: ETH) has performed better following the previous Bitcoin halving.
what happened: The last Bitcoin halving occurred four years ago on May 11, 2020. Bitcoin (CRYPTO:BTC) was trading at around $9,700 and Ethereum's price was around $186. Since then, both Bitcoin and Ethereum have posted impressive price increases of 621% and 1,786%, respectively.
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In the two months following the halving event, the price of Ethereum skyrocketed, while the price of Bitcoin fell. Ethereum continued to soar until August 2020, but Bitcoin prices only increased (+27%) from July 2020 to August 2020. From May 2020 to August 2020, Ethereum rose 110%.
One year after the last Bitcoin halving, Ethereum reached a then-high $3,911 in May 2021. This matched Bitcoin's then high of $63,576 in April 2021. By September 2021, Ethereum had surpassed its previous high. – All-time high price level, current high is $4,635 from November 2021.
One month after the halving, Ethereum overtook Bitcoin in terms of payment volume and became the most used blockchain.
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Also read: Veteran trader Peter Brandt labels Ethereum a 'junk coin', says Bitcoin is 'king over gold'
Why it's important: Ethereum was founded by eight members including: Vitalik Buterin, he is still involved with the Ethereum Foundation. 2 other members — charles hoskinson and gavin wood — Start a rival blockchain, cardano and Polka dot pattern.
The original idea for Ethereum was conceived by a 19-year-old Buterin in November 2013, and his whitepaper included the limitations faced by Bitcoin. Ethereum boasts of being the largest blockchain optimized for programmability or digital contracts.
While the latest Dencun upgrade brought major changes to the network, Ethereum is currently awaiting approval for a Spot Ethereum ETF. The U.S. Securities and Exchange Commission's deadline is his May 23, 2024 date, but approval appears in doubt.
what's next: The impact of Ethereum and Bitcoin as institutional asset classes is a topic expected to be thoroughly explored at Benzinga's upcoming Future of Digital Assets event on November 19th.
Read next: A veteran trader assesses Bitcoin, Ethereum and Solana: This is his “golden child”
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