- Bitcoin and Solana are outperforming Ether.
- The two largest cryptocurrencies have historically moved in tandem.
- I'll explain what's going on.
The world's two largest cryptocurrencies typically rise and fall in parallel.
However, over the past week, Ether has fallen 7% to $2,525, while Bitcoin has remained relatively flat at $68,957, according to CoinGecko.
“ETH has outperformed BTC in the past, but we haven’t seen anything like that this cycle,” said Ben Caselin, chief marketing officer at crypto exchange VALR. DL News.
The soaring price of Bitcoin and Solana has been further fueled by the launch of the Spot Bitcoin exchange-traded fund and the ongoing memecoin craze.
And the recent discrepancy between Bitcoin and Ethereum continues the decoupling that occurred after the Ethereum ETF went live in July.
Since then, Ether is down 36%, while Bitcoin is up 2%.
While many are celebrating the long-awaited launch of a financial product that allows retail investors to buy and sell Ether through their brokerage accounts, the ETF has not seen nearly the same inflows as the Spot Bitcoin ETF.
Since July, the Spot Ether ETF has seen more than $504 million in net outflows, according to data from SoSo Value.
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Meanwhile, the Spot Bitcoin ETF has seen total inflows of around $22 billion since its launch in January.
“While regulators and traditional investors have shown a more accommodating attitude towards BTC, the same is not quite the same for ETH – at least not yet,” said Shauri, Managing Partner at Masterkey.VC. Rejwan said. DL News.
The moon or fate?
Ether’s recent losses reflect the rise of other layer 1 protocols such as Solana, where the cryptocurrency has risen nearly 7% in the past seven days, Kasserine said.
“There is no guarantee that Ethereum will maintain its top position for long,” he added.
However, he said the price of Ethereum could rise in the coming weeks.
“The upcoming US election could bring volatility back into the market, which may bode well for Ethereum in the short term, but such an event could also help with exit liquidity,” he said. said.
Rejwan sounded more optimistic. He said it is still too early to rule out cryptocurrencies, given the recent launch of the Spot Ether ETF.
“I think Wall Street's interest will start to materialize in about six to 10 months,” he said, “or the bull market could accelerate their decision.”
Virtual currency market movements
- Bitcoin is trading at $68,957, up 2.1% in the past 24 hours.
- Ethereum is down 1.9%, trading at $2,525.
