While some traders have panicked during the recent market crash, the number of active Ethereum addresses has soared. The increase in the number of active addresses indicates that user activity on the Ethereum blockchain is growing in tandem with price. ETH is showing solid intraday gains versus BTC. The cryptocurrency is up nearly 7% over BTC in just the past few hours, which means a significant step forward.
One of the main reasons the altcoin market is growing is that altcoins have lost more value than BTC since the Coinbase listing.
Hence, when Bitcoin began to stabilize, altcoins began to grow at a tremendous pace.
Correlation of BTC and ETH
The regularity of the behavior of BTC and ETH is assessed by experts separately. According to some experts, coin prices are interconnected, the jumps are justified by a number of factors that are often the same and push each other. However, they don’t indicate these factors specifically.
On the other hand, according to other experts, the correlation of the leading cryptocurrencies is not clear enough to be argued that it affects. Along with this, the market is not active enough, and the increase in investor interest in ETH is just breath, which is changeable.
Other analysts point out that the correlation carries weight, but it wanes from time to time. The reason is that Bitcoin continues to dominate the market, the rest of the coins depend on it, just like ETH. Thus, when there is a strengthening of positions in the first cryptocurrency, the rest, at least the leading altcoins, also feel the strengthening. That is, ETH holders still need to focus on the behavior of the first cryptocurrency.
However, according to the analytical center skew, the BTC/ETH correlation is declining and continues to decline. Which may indicate a new bullish trend in the market, especially for altcoins.
In addition, analysts believe that the growth in the value of ETH will be influenced by the interest from institutional clients.
A trader with the pseudonym “Crypto Capo” has expressed optimism about the breakout of ETH against BTC. He said, “ETH/BTC is going to redefine the concept of parabolic”.
Bitcoin or Ethereum?
Investor interest has returned to the cryptocurrency market again, experts say. There is an accumulation of long positions in the main digital assets: Bitcoin, Ethereum, etc. This is due to the gradual change in the focus of investors from the stock market to alternative platforms. And digital assets are one of the most potentially profitable instruments.
Analysts point out that Ethereum is a promising asset to buy. According to their forecasts, the rate of the coin may soon rise to a new high. The growth driver was the release of Eth2 and second-tier solutions. Which will allow passively increasing the number of coins for keeping them in the wallet.
Consequently, Ethereum will become the most attractive asset for casual users in the coming months.