The Ethereum (ETH, +3.71%) market increased three times faster than Bitcoin (BTC, +6.55%). And that happened in the first six months of the year. While huge number of investors diversified into the native token of Ethereum’s blockchain. Ethereum Outdid Bitcoin in Both Volume Growth and Price Performance
- Ether’s trading volume totaled $1.4 trillion in the January-to-June period, a 1,461% rise from $92 billion spotted in first-half 2020. So, Ethereum Outdid Bitcoin. Ethereum Volume Growth and Bitcoin Volume Growth show this.
- Trading volumes in Bitcoin, the largest cryptocurrency, increased 489% to $2.1 trillion during the same period of time.
- Ethereum also overshadowed Bitcoin and it shined in Ethereum market, the S&P 500 and gold in price performance, rallying 210% over the six months ended June 30. Bitcoin increased 20%, the S&P 500 obtained 14% and gold fell 6.7%.
- “Many of our largest institutional clients, including hedge funds, endowments, and corporates, increased or added first-time exposure to ETH in H1, believing the asset has long-term staying power tantamount to BTC’s, while playing a differentiated role in their portfolios,”.
- The explosive development of Ethereum-based decentralized finance (DeFi), hopefulness and confidence that Ethereum’s transition to a proof-of-stake mechanism will turn Ethereum into a yielding asset and the deflationary strike of the EIP-1559 upgrade as reasons for Ether’s price rally.
- The Ethereum Improvement Proposal (EIP)-1559 upgrade planned for Aug. 4 will activate a mechanism to take a variable amount of Ethereum out of circulation. It would do it each time a transaction is executed. That will limit supply growth and may give Ether a store-of-value-like appeal.
While Ethereum gets ready for the activation of its 11th backward-inappropriate upgrade. In addition, it is called a “hard fork,” on Wednesday, Aug. 4. Some developers are concerned that the upgrade might use more testing before deployment.
In a short time following the biweekly Ethereum core developers meeting on Friday, July 23. Ethereum Foundation’s Tim Beiko mentioned in the All Core Developers Discord chatroom. “A couple people have reached out or tweeted about not necessarily being happy with not delaying [the hard fork] … I asked about this [in the meeting] and no one seemed to have a strong opinion, but some folks mentioned this maybe wasn’t the right approach.”
In a reply to Beiko’s comment, Ethereum software client developer Alexey Akhunov told that he agreed it was “strange”. And also that there wasn’t more discussion in the biweekly meeting about potentially delaying the hard fork, dubbed “London,” because of recent events.