Since October 1, ETH has shown significant movement north against Bitcoin. In early November, the one-month realized correlation between the BTC/ETH pair dropped to 60%. This is the lowest in the history of the currency for decades. In addition, from the beginning of the year, before Bitcoin recorded a profit of 105%, Ether increased by 505%. This is almost five times better than the flagship cryptocurrency.
The advantage of Ether is probably best reflected in the fact that the ETH/BTC pair has continued its trend towards the north over the last two months. However, there has been a large-scale decline in the market since the beginning of December. In this regard, even when the value of BTC fell below $50,000, the price of the ETH/BTC pair continued to accumulate value. It increased, by about 13%, thus reaching a three-year high.
According to a spokesman for the cryptocurrency exchange, the above activity, ETH has been able to gain a lot of independent market support against Bitcoin; It was pretty unusual considering that the ETH/BTC pair should only rally when the bull is running. He added that this does not mean that ETH is already disconnected from BTC; However, it clearly shows that not all alt is related to BTC movements. It is crucial to mark that ETH may no longer be viewed as an alt. However, it is a sign with its unique features. The main driving force of recent growth may be related to GameFi, Metaverse, and NFT narratives, which are mainly on the ETH network. The overall record is already beginning to change thanks to the new outstanding use and adoption of Ethereum.
Analysts predict that a similar scenario could develop on other known altcoins. Premium Altcoin has now developed a community identity and ecosystem independent of BTC. As the demographics of the ETH and BTC camps continue to alter, it is expected that their respective pricing actions will gradually deviate further.
ETH Position in the Market
Analysts say Ethereum has long surpassed Bitcoin as the most commonly used blockchain. Even when it comes to recovery after a period of a market downturn, it has shown significantly better performance than BTC. Ethereum is a significant player in DeFi and a central platform for the NFT space to create financial applications. According to experts, Ether is in a hurry to overtake Bitcoin as the top cryptocurrency in market capitalization.
Ether’s ever-evolving monetary policy is to help turn an asset into a deflationary asset, making it attractive to both long-term owners and institutional funds. Therefore, it is reasonable that the perception of Ether as an independent asset will gradually gain more support.