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Ethereum Blockchain’s Q1 2024 Success: Unveiling The Factors Behind The $370M Profit Surge

Not only has Ethereum (ETH) seen an impressive rise of nearly 100% in the first quarter of 2024 in terms of price action, but the Ethereum blockchain has also generated substantial profits of up to $369 million during this period. This unexpected profitability has raised questions about how a blockchain like Ethereum can be profitable. 

Ethereum Revenue Potential

As noted in a recent analysis by the on-chain data platform Token Termina, the collection of transaction fees is a critical aspect of Ethereum’s business model. 

All network users are required to pay fees in ETH when interacting with applications on the blockchain, which serves as an important source of revenue for Ethereum.

Once transaction fees are paid, a portion of the ETH is burned and permanently removed from circulation. This process, commonly referred to as “ETH buyback,” benefits existing ETH holders, as the reduction in supply increases the scarcity and value of the remaining ETH tokens. Thus, the daily burning of ETH contributes to the economic benefit of those holding Ethereum.

In contrast to the burning of ETH, Ethereum also issues new ETH tokens as rewards to the network’s validators for each new block added to the blockchain. 

These rewards are similar to traditional stock-based compensation and are designed to incentivize validators to secure and maintain the network’s integrity. 

Nonetheless, it’s important to note that the issuance of new ETH tokens dilutes the holdings of existing ETH holders.

According to Token Terminal, the difference between the daily USD value of the burned ETH (revenue) and the newly issued ETH (expenses) represents the daily earnings for existing ETH holders, essentially the Ethereum blockchain owners. This calculation allows for the determination of Ethereum’s profitability on a day-to-day basis.

Reduced Transaction Costs Drive $3.3 Billion Growth

In addition to the overhauled revenue model implemented by the Ethereum blockchain, the launch of the much-anticipated Dencun upgrade to the Ethereum ecosystem at the end of the first quarter of 2024 brought significant changes, including the introduction of a revolutionary data storage system called blobs. 

This upgrade has reduced congestion on the Ethereum network and significantly reduced transaction costs on Layer 2 networks such as Arbitrum (ABR), Polygon (MATIC), and Coinbase’s Base. 

Implementing the Dencun upgrade, alongside the adoption of blobs and Layer 2 networks, has significantly impacted Ethereum’s revenue. 

According to Token Terminal data, the blockchain’s revenue has witnessed an 18% annualized increase, amounting to an impressive $3.3 billion. These revenue gains can be attributed to reduced transaction costs, making Ethereum a more attractive platform for users and developers.

Ethereum

Despite the positive revenue growth, it is essential to acknowledge the impact of market corrections and dampened investor interest in the second quarter of 2024. 

Over the past 30 days, Ethereum’s revenue has declined by over 52%. This downturn can be attributed to the broader market dynamics and the temporary decrease in investor enthusiasm. 

Examining the data over the past 30 days, Ethereum’s market cap (fully diluted) has decreased by 15.2% to $358.47 billion. Similarly, the circulating market cap has declined by 15.2% to reach the same value. 

Additionally, the token trading volume over the past 30 days has declined 18.6%, totaling $586.14 billion. 

Ethereum

ETH is trading at $3,042, up 0.4% in the last 24 hours. It remains to be seen whether these changes and the reduction in fees will have the same effect in the second quarter of the year, and how this, coupled with a potential increase in trading volume, can push the ETH price to higher levels. 

Featured image from Shutterstock, chart from TradingView.com 

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Ethereum Dencun Upgrade Launch Boosts ETH Price, Eyes 90% Fee Reduction

Ethereum (ETH) has made significant strides in its 2024 roadmap with the successful launch of the Dencun upgrade on the final Holesky testnet. 

This is seen as a crucial step towards deploying the upgrade on the mainnet, signaling Ethereum’s progress in improving transaction efficiency, and scalability and reducing transaction fees by up to 90%. As a result, ETH has surged 2.9% in the last 24 hours, breaking its previous downtrend.

Ethereum Dencun Upgrade

The Dencun upgrade was first activated on the Sepolia testnet in January 2024, following its deployment on the Goerli testnet. This upgrade aligns with Ethereum’s broader strategy to enhance scalability and reduce transaction costs for its users. 

Introducing the concept of “proto-danksharding,” Dencun aims to decrease transaction costs for layer-2 blockchains and address scalability challenges, paving the way for the eventual implementation of “danksharding” for further benefits.

Once fully implemented, Dencun is expected to significantly increase Ethereum’s transaction processing capacity, potentially enabling the network to handle over 100,000 transactions per second. According to the network’s development team, this scalability enhancement is crucial for supporting the growing ecosystem of decentralized applications (dApps) and users on Ethereum.

Furthermore, Dencun will have notable technical improvements, such as the introduction of ‘blobs,’ which reduce the cost of rollups on the Ethereum mainnet by compressing transaction data off-chain. 

By caching data needed for short-term transaction verification, blobs aim to minimize storage and processing requirements, further enhancing the network’s transactional capabilities.

Anticipation For ETH’s Market Impact

The successful implementation of the Dencun upgrade holds the potential for significant implications on ETH’s market value, driven by a combination of factors.

Firstly, the upgrade’s enhanced network capabilities, including boosted transaction processing capacity and reduced costs, are expected to attract more developers and users to the Ethereum ecosystem. 

With improved scalability and lower transaction fees, Ethereum could become a more attractive platform for building dApps and conducting transactions. This increased utility and demand for Ethereum could have a positive impact on its market value as more participants seek to acquire ETH tokens.

The perceived reliability and forward momentum resulting from the successful implementation of Dencun may attract more investors to consider Ethereum as an investment opportunity. The increased interest and demand for ETH tokens driven by this positive sentiment can contribute to potential price appreciation.

Lastly, the anticipation of Dencun’s benefits and the reactions to its successful implementation may lead to short-term price volatility, with investors adjusting their positions based on their expectations of how the upgrade will impact Ethereum’s functionality and market position.

All of these developments could have a significant impact on ETH’s price trajectory and position the token in a long bullish trend, if this momentum continues to be capitalized on, the next barrier at $2,450 could be easily surpassed, potentially sending ETH to new highs. 

While the long-term implications remain to be seen, this is a positive development for ETH bulls as the network has lacked significant catalysts and has been involved in a significant price correction for the past 3 weeks.

With activations on the Sepolia and Goerli testnets already completed, the final testnet deployment, Holesky, was initially scheduled for February 7, 2024. However, it has now been rescheduled for March 2024. 

Ethereum

Featured image from Shutterstock, chart from TradingView.com

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QCP Capital Forecasts ETH’s Dominance Over Bitcoin To Persist, Ethereum ETFs In Focus

Over the past 30 days, Ethereum (ETH), the second-largest cryptocurrency, has experienced a notable surge of 17%, outperforming Bitcoin (BTC), which has recorded a surge of 2.5% over the same period. 

This comes as the initial excitement surrounding the approval of the exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) appears to have waned, with BTC witnessing a 5% drop in the past seven days. 

Interestingly, according to crypto trading firm QCP Capital, following the approval of Bitcoin ETFs, the focus has shifted to the potential launch of an ETH spot ETF, which could be one of the factors for Ethereum outperforming BTC.  

Ethereum Gains Ground Against BTC 

According to QCP Capital, the total volumes transacted across all 11 ETFs in the past week have reached $9.8 billion. The Grayscale Bitcoin Trust (GBTC) alone accounted for $4.6 billion. 

Since converting from a Trust to an ETF, GBTC has experienced outflows of $1.17 billion. This is “unsurprising” for the firm, considering GBTC had been trading at a discount since 2020, offering investors an opportunity to exit at par value. 

BTC initially surged to a high of $49,100 upon ETF approval but has since seen a decline, consolidating above the $40,000 support level. Volumes have slowed since the initial launch, and market attention is focused on GBTC outflows. 

Meanwhile, ETHBTC, which traded below 0.05, has seen an upward trend to 0.06. According to QCP Capital, Ethereum is anticipated to continue to outperform Bitcoin in the medium term as the narrative shifts towards potential ETH Spot ETF approvals.

Bitcoin Forward Contract Yields Decrease

Following the launch of the BTC spot ETF, BTC forward contracts have experienced a greater decline compared to ETH forward contracts. BTC 1-month forward fell from 32% annualized to 9% (-23%), while ETH 1-month forward decreased from 28% to 12% (-16%). 

According to QCP Capital, despite declining yields, ETH forwards still appear attractive, offering 11-13% annualized returns. Additionally, selling ETH 1-month 2200 Puts presents a viable option with yields above 21% annually, and it could be a suitable level to buy in the event of a dip upon potential ETH spot ETF approvals.

Ultimately, the crypto firm suggests that the forthcoming BTC halving in mid-April and the potential approval of ETH Spot ETFs from May are anticipated to be significant events for the crypto market. 

In the interim, market movements may also be influenced by macroeconomic events. The January Federal Open Market Committee (FOMC) meeting, as well as the February Non-Farm Payrolls (NFP) and Consumer Price Index (CPI) reports, are being closely monitored for insights. 

The pace of the balance sheet runoff, discussed briefly in December 2023, is expected to provide further clarity during the January FOMC meeting. The market consensus suggests a slowdown in quantitative tightening (QT), but the timing and extent of these changes remain uncertain.

Overall, the potential launch of an Ethereum spot ETF has sparked speculation and could have a transformative impact on the Ethereum ecosystem. As the market grapples with changing dynamics, attention remains on key events, such as the BTC halving and potential ETH Spot ETF approvals.

Ethereum

Featured image from Shutterstock, chart from TradingView.com

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Record Crypto Options Volume Expires Pre-Bitcoin ETF Deadline: Analyzing BTC And ETH Reactions

The recovery of the overall crypto market this year has spurred a surge in the digital-asset derivatives market as institutional investors seek exposure to the crypto space. 

According to a recent Bloomberg report, the deadline for US regulators to approve or reject Bitcoin (BTC) exchange-traded funds (ETFs) has prompted traditional investors to turn to crypto options and futures, leading to unprecedented trading volumes.

Crypto Options Trading Hits Record High

Before the options expiry on Friday morning, crypto options trading volume reached a new all-time high, with options worth a notional value of $11 billion, as highlighted by Bloomberg. Of this total, Bitcoin contracts accounted for $7.7 billion, while Ethereum (ETH) options represented $3.5 billion.

Despite the expiration of many options, the impact on the major cryptocurrencies has been limited.  With its strong support floor at $42,000, Bitcoin has maintained its position for a potential uptrend once bullish momentum returns and buying pressure increases. 

Over the past 24 hours, Bitcoin has traded within the same range as the previous day, at $42,200, experiencing only a 0.4% decline. Nevertheless, Bitcoin has yet to fully recover from its 3.4% drop over the past seven days.

Crypto

In contrast, ETH was hit by the expiration of options contracts. Ethereum, the second-largest cryptocurrency on the market, fell more than 2%. EHT dropped to $2,316 after hitting an annual high of $2,445 on Thursday.

However, while heightened trading activity may accompany the expiration of options, it is unlikely to impact spot market prices, according to Luuk Strijers significantly, Deribit’s chief commercial officer. 

Strijers notes that clients are rolling their positions to 2024 expiries, and additional activity is anticipated after the expiry. The focus of attention and trading activity will primarily be on the impending ETF decision, Bloomberg notes.

Surge From Traditional Asset Managers 

The cryptocurrency market has undergone a strong rally this year, with Bitcoin surging nearly 160% following a turbulent 2022 marked by industry scandals and price declines. 

The recovery has been fueled partly by the optimism surrounding the potential approval of spot Bitcoin ETFs, which would attract a broader range of investors to the asset class.

Ryan Kim, head of derivatives at digital-asset prime brokerage FalconX, highlights the growing participation from crossover macro accounts, referring to large traditional asset managers allocating a small percentage of their portfolios to cryptocurrencies and crypto-focused hedge funds.

In addition, according to Bloomberg, perpetual futures, a favored tool for leveraging crypto trades, are trading at a significant premium compared to spot prices, indicating rising demand for such products.

Overall, the surge in the cryptocurrency derivatives market, driven by options expiry and the pending decision on Bitcoin ETFs, reflects the growing interest of institutional investors in the crypto space. 

The record-breaking trading volumes and increased participation from traditional asset managers highlight the evolving landscape of digital assets. 

As the market awaits the regulatory verdict on Bitcoin ETFs, it remains to be seen how these developments will shape the future trajectory of the crypto market and its integration with traditional financial systems.

Crypto

Featured image from Shutterstock, chart from TradingView.com 

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Ethereum Rising User Base Boosts Revenue Projections: Predicted To Double To $5 Billion

Bitwise Invest, an investment firm specializing in the crypto space, recently unveiled its anticipated crypto predictions for 2024.

These projections provide a glimpse into the future of the cryptocurrency industry, highlighting major milestones and potential breakthroughs for the largest cryptocurrencies such as Bitcoin (BTC), and Ethereum (ETH), and exchanges like Coinbase. 

Bitcoin Predicted To Smash Records

Bitwise’s first prediction suggests that Bitcoin will surpass previous records and trade above $80,000, setting a new all-time high. The firm attributes this bullish outlook to two key catalysts: the imminent launch of a spot Bitcoin exchange-traded fund (ETF) early in 2024 and the anticipated halving of new Bitcoin supply by the end of April. 

Furthermore, Bitwise expects the spot Bitcoin ETFs to be approved and to collectively become the most successful ETF launch in history.

Interestingly, Bitwise also forecasts that Coinbase, one of the largest cryptocurrency exchanges, will witness its revenue double, surpassing Wall Street expectations by at least 10 times. 

Ethereum

The firm points out that Coinbase’s trading volumes typically surge during bull markets, and they anticipate a similar trend in 2024. Additionally, Bitwise highlights Coinbase’s successful launch of various new products that have gained traction in the market.

On the other hand, the investment firm predicts that more money will settle using stablecoins compared to traditional payment giant Visa. Bitwise highlights stablecoins as one of crypto’s “killer apps” and notes their remarkable growth from virtually zero to a $137 billion market in just four years. Bitwise anticipates 2024 to be another significant year for stablecoin expansion.

Ethereum Set For Major Breakthrough

Bitwise expects Ethereum’s revenue to more than double from $2.3 billion in 2023 to $5 billion in 2024. The firm attributes this growth to the increasing number of users flocking to crypto applications. Bitwise emphasizes Ethereum’s potential as one of the fastest-growing large-scale tech platforms globally.

Ethereum

Furthermore, Bitwise anticipates a major upgrade to Ethereum, labeled EIP-4844, which could reduce average transaction costs to below $0.01. This significant cost reduction is expected to pave the way for mainstream adoption and the development of groundbreaking applications within the crypto ecosystem.

Bitwise’s bonus prediction suggests that by the end of 2024, one in four financial advisors will allocate funds to cryptocurrencies in their clients’ accounts. The firm foresees increased adoption by financial advisors once Bitcoin becomes easily accessible and mainstream.

Ethereum

In summary, Bitwise Invest’s crypto predictions for 2024 paint an exciting future for the cryptocurrency market. With expectations of a new all-time high for Bitcoin, the successful launch of spot Bitcoin ETFs, and revenue growth for industry giants like Coinbase and Ethereum, the crypto space is poised for significant advancements in the coming years.

As of the current update, ETH is trading at $2,200, reflecting a 1.4% increase over the past 24 hours. This positive movement follows a similar trend set by BTC. However, Ethereum has experienced a slight decline of 2.4% in the past seven days.

Featured image from Shutterstock, chart from TradingView.com 

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Ethereum Price 2023 Breakthrough: Surpassing Bitcoin, Altcoin Surge Next?

For the first time in 2023, the Ethereum price has outperformed Bitcoin across several metrics, hinting at a fundamental shift in market structure. The second cryptocurrency by market capitalization follows the general sentiment in the sector, setting new yearly highs.

As of this writing, the Ethereum price trades at $2,300 with a 4% profit in the last 24 hours. Over the previous week, the cryptocurrency recorded a 10% profit, with most of the altcoin sector still lagging the current price action.

Ethereum Price ETH ETHUSDT

Ethereum Price Signals Strength For Altcoin Sector?

A report from BlockScholes posted by the options platform Deribit indicates a spike in the Ethereum price volatility back to its levels above Bitcoin’s. ETH’s shift in market structure hints at traders and institutions gearing up for early 2024.

The report claims that the potential approval of a spot in the US ETH Exchange Traded Fund (ETF) is behind the current price action. This new dynamic suggests that the bullish sentiment above this event slipped from Bitcoin to Ethereum.

As seen in the chart below, Ethereum records a higher return than Bitcoin for the first time since July 2023. The surge in returns, BlockSholes said, allowed ETH to buck a persistent downtrend, but overall, the cryptocurrency’s performance remains in its yearly range.

Ethereum price ETH ETHUSDT chart 2 BS

In other words, the Ethereum price is doing better than in other periods across 2023 but has yet to resume a bullish momentum concerning Bitcoin. However, the report noted:

This reversal is not yet strong enough for us to be confident in a return to the market structure that we had previously come to expect, but does indicate that the effects of speculative bets around the application of a spot ETF are not limited to BTC. This is echoed by the implied volatilities for both assets across the term structure, which forecast similar volatility levels for both assets.

What Favors An Altcoin Rally

In addition, the report noted a decline in the US dollar as measured by the DXY Index. Risk assets can thrive as the currency trends lower, potentially hinting at a loose monetary policy by the Federal Reserve (Fed).

If Ethereum continues gaining bullish momentum from its current levels, the entire altcoin sector could see further profits. The report indicates that most entities and traders are pricing in a “risk event” by the end of January 2024.

Thus, Bitcoin and Ethereum may see a more significant rally by that time. Whichever coin prevails might reveal more information on the subsequent trend; if Ethereum outperformed, then altcoins are more likely to follow.

Cover image from Unsplash, chart from Tradingview

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Crypto Expert’s Picks: 5 Cryptos To Buy, HODL, Or Sell Now

Renowned crypto expert and Forbes’ Director of Digital Asset Research, Steven Ehrlich, has provided insights on five prominent cryptocurrencies in the current market landscape.

Solana Shakes Off Setbacks, Positioned As Top Crypto To Buy

Bitcoin BTC), the most prominent cryptocurrency, has experienced a remarkable 120% surge in 2023. After a long wait for Securities and Exchange Commission (SEC) approval of a Bitcoin exchange-traded fund (ETF), recent developments indicate that a Spot Bitcoin ETF could finally get the green light by January, as many in the crypto community have predicted, according to Ehrlich.

Introducing Bitcoin ETFs is anticipated to generate significant demand from mainstream investors, contributing to a potentially bullish environment. Furthermore, the impending fourth halving event in April, which reduces block rewards and slows down supply, adds to the positive outlook for Bitcoin.

While Ethereum (ETH), the second-largest cryptocurrency, has demonstrated substantial growth historically, its performance this year has been comparatively modest, with a 65% increase. 

Crypto

Concerns about regulatory ambiguity in the United States, particularly as it relates to tokens like Ethereum, have dampened investor confidence. In addition, despite a major upgrade aimed at improving efficiency and reducing energy consumption, Ethereum’s growth in key metrics, such as transactions per second and active users, has been underwhelming; for these reasons, Ehrlich believes investors need to hold ETH tokens.

Solana (SOL), on the other hand, often referred to as the “Ethereum killer,” suffered setbacks following the collapse of FTX in 2022. However, the stigma surrounding Solana has dissipated, leading to an impressive 313% gain this year. 

According to Ehrlich, Solana stands out for its “robust technology,” capable of processing thousands of transactions per second and potentially reaching 50,000 transactions per second. As such, Ehrlich believes this is a buy signal for SOL.

Binance Coin At Crossroads

Binance’s native token, BNB, experienced significant growth, reaching a peak value of $100 billion. However, recent developments, including Binance founder Changpeng Zhao’s guilty plea, substantial fines, and his decision to step down as CEO, have instigated a decline in BNB’s value. 

While BNB’s utility within the Binance ecosystem and rebate mechanisms for traders may provide some support, concerns arise if traders abandon the exchange en masse. 

Given these developments, BNB’s future remains uncertain, and Ehrlich believes that BNB could fall even further, stating that investors should consider selling the token.

Crypto

Blur, a marketplace focused on non-fungible tokens (NFTs), has emerged as a strong contender in the NFT market. As the largest marketplace for Ethereum-based collections, Blur rewards users with its native token, BLUR, based on trading volume and provides voting rights for platform governance. 

While NFT trading experienced a slump this year, recent signs of recovery, along with notable brands such as Disney and Nike embracing NFTs, indicate a potential rebound. However, Ehrlich believes investors should exercise caution due to the risk of unexpected token airdrops flooding the market.

Overall, Bitcoin’s forthcoming spot ETF and halving event, Ethereum’s regulatory challenges, Solana’s technological prowess, BNB’s uncertain future, and Blur’s position within the crypto NFT market are all factors that warrant consideration. 

It remains to be seen how these cryptocurrencies will react to further developments, and what will be the impacts on their price actions for the last part of the year. 

Featured image from Shutterstock, chart from TradingView.com 

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Ethereum Bulls May Propel Price To $3,100, Analyst Suggests

Ethereum (ETH), the second-largest cryptocurrency, has seen a significant price increase over the past month. The recent bullish rush in the crypto market, coupled with BlackRock’s involvement, has pushed ETH to its year-to-date high of $2,139.

Ethereum Outshines Bitcoin And Altcoins

According to market data provider Kaiko, ETH has outperformed BTC and many altcoins in recent weeks, signaling a shift in market dynamics.

Kaiko’s report highlights how ETH struggled to gain momentum over the past year, despite successful upgrades such as The Merge in April. 

However, the sentiment around ETH changed dramatically when BlackRock filed for a spot ETH exchange-traded fund (ETF), leading to a reversal in the ETH to Bitcoin (BTC) ratio.

The impact on the market was substantial, with ETH prices surging above $2,000 for the first time since April. Additionally, daily spot trade volumes reached $7 billion, the highest level since the collapse of FTX. 

Ethereum

The ETH ETF narrative provided further impetus to the ongoing rally, amplified by improved global risk sentiment and declining US Treasury yields.

The dominance of altcoin + ETH volume relative to BTC has risen to 60%, marking its highest level in over a year. During bull rallies, altcoin volume typically increases relative to BTC. 

This surge in demand has also led to rising leverage, as reflected in the recovery of ETH open interest to early August levels. Notably, BTC open interest has declined over the past month due to liquidations on Binance, resulting in the Chicago Mercantile Exchange (CME) outpacing Binance as the largest BTC futures market.

Furthermore, ETH funding rates, a gauge of sentiment and bullish demand, have reached their highest levels in over a year, indicating a significant shift in sentiment. In November, both BTC and ETH 30-day volatility rose to 40% and 50% respectively, following a multi-year low of around 15% during the summer months.

Crypto Expert Predicts ETH Breakout

Renowned crypto expert Michael Van de Poppe believes that ETH is on the cusp of a significant breakthrough. According to Van de Poppe, if Ethereum manages to surpass the crucial $2,150 resistance level, it could signify the end of the bear market. 

Drawing a parallel with Bitcoin’s critical $30,000 barrier, Van de Poppe suggests that breaching this level could pave the way for a substantial rally, potentially propelling Ethereum towards the price range of $3,100 to $3,600. 

Ethereum

However, Ethereum has yet to touch the $2,150 resistance line, as it faces a pre-existing obstacle in the form of its yearly high of $2,139. This pivotal level has halted the cryptocurrency’s bullish momentum, acting as a formidable resistance. 

As a result, Ethereum has been consolidating within a narrow range between $2,050 and $2,100 for the past three days.

The forthcoming days will reveal whether Ethereum can overcome its immediate resistance levels and establish a consolidated position above them. Alternatively, it may face a fate similar to Bitcoin, which failed to surpass the $31,000 level for over seven months before reaching its current trading price of $36,000.

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Dominates: Overtakes Ethereum In 24H NFT Sales Volume For The First Time

In a turn of events within the non-fungible token (NFT) market, Bitcoin (BTC) has achieved a significant milestone by surpassing Ethereum (ETH) in 24-hour NFT sales volume. This marks the first time that Bitcoin has outperformed Ethereum in this aspect.

BTC’s NFT Breakthrough

Bitcoin’s recent achievement of surpassing Ethereum in 24-hour NFT sales volume signals a changing trend and growing interest in the NFT market. 

While Ethereum has long been recognized as the dominant blockchain for NFTs, Bitcoin’s entrance into the space demonstrates its increasing relevance and appeal to NFT enthusiasts and collectors.

The data highlights that Bitcoin accounted for $17,291,694 in NFT sales, with 575 buyers participating. On the other hand, Ethereum recorded $26,689,252 in total sales, with 11,225 buyers. 

Bitcoin

Despite Ethereum maintaining a higher total sales figure, the relatively lower wash percentage of Bitcoin suggests a potentially healthier and more organic market activity.

However, when it comes to volatility, data from Deribit, the leading crypto derivatives exchange, shows that the spread between ETH and BTC volatility, commonly referred to as the ETH DVOL vs. BTC DVOL spread, has narrowed significantly since October 23rd from -11.6 to just -0.6. This shift indicates a change in investor sentiment and increased attention towards Ethereum and altcoins.

In light of this development, Ethereum has outperformed Bitcoin over the past fourteen days. ETH has seen significant price movement, gaining over 2% in the last 24 hours, 6% in the last seven days, and 4% in the last fourteen days, bringing its current price to $1,899.

Bitcoin

Meanwhile, Bitcoin has exhibited a slowdown in its upward momentum and is currently consolidating above $35,400. It has seen a 2% increase in the past 24 hours, 3% in the past seven days, and 1% in the fourteen-day timeframe.

However, it is important to note that BTC has gained more than 82% year-to-date, while ETH has only increased by 30% during the same period, according to CoinGecko data. 

Nasdaq 100 Correlation With Bitcoin Plummets

According to recent Kaiko data, BTC has witnessed a significant decline in its correlation with traditional assets throughout the year. One notable development is the diminishing correlation between Bitcoin and the Nasdaq 100 index. 

Over the past year, Bitcoin’s 60-day correlation with the Nasdaq 100 has substantially declined, plunging from over 70% in September 2022 to approximately 19% as of last week. 

Bitcoin

Bitcoin’s negative correlation with the US dollar, which ranged from 40% to 50%, has also weakened. Currently, the correlation is around 11%, signifying a reduced tendency for Bitcoin’s value to move in the opposite direction of the US dollar.

While Bitcoin’s correlation with gold has seen some upward momentum since August, the average correlation throughout the year has remained relatively low at 12%. 

This suggests that the relationship between Bitcoin and gold has been modest regarding price movements and indicates a potential divergence in investment characteristics between the two assets.

Featured image from Shutterstock, chart from TradingView.com 

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Ethereum (ETH) Price Is Likely To Stop Bouncing Now, Analyst

In a tweet two days ago, Bluntz predicted that ETH is only a 10% drop away from stabilizing. The Crypto trader is famous for accurately predicting Bitcoin’s 2018 bear market. More popular as the “smart contracter,” the strategist explained that he had been closely tracking ETH price charts since August. 

“Ethereum is in the final stages of its current bearish run and will swing upward soon,” he assured his 211,000 followers. Once the token corrects its course, investors can then get ready to take up long-term positions, the tweet explained.

Related Reading: XRP Sluggish In Last 7 Days As Ripple Vs. SEC Case Drags On

Smart Contracter’s Predictions Have Held Thus Far 

Smart Contracter presented a chart based on the Elliot Wave theory as evidence of his predictions. As one of the prominent theorists of this market analysis method, Bluntz has successfully made some predictions in the past. Apart from his much-lauded 2018 Bitcoin forecast, the strategist’s recent predictions on Ethereum seem to be holding so far. Smart contracter predicted September’s $1800 rise last month using the Wave crowd psychology method. 

At the time of his prognosis, the second largest crypto was trading a $1600 low. The analyst predicted that ETH would rise temporarily in a B wave before bottoming out in anticipation of another rally. He forecasts that ETH will dip to $1,200 before climbing back to $2,000.

Ethereum’s price is currently trading above %1,450. | Source: ETHUSD price chart from TradingView.com
Other Predictions By Smart Contracter

We’re in the final innings of this $eth correction, correcting the rise from July. Have been mapping this out step by step since August top, only 10% or so more down to go before we begin to look for long-term buys, Bluntz said.

Furthermore, the Analyst’s chart indicates that Ethereum is going through another drop that will eventually transition into a Bull run. $1,300 will mark the buy signal point if the chart’s structure looks appropriate, says the pseudonymous strategist. 

Notably, Ethereum is not the only crypto Smart Contracter is tracking. Last week, he expressed bearish sentiments on Bitcoin, claiming its price charts looked ugly at the time. Another famous analyst ‘Dave the Wave’ had predicted that the king Coin was gearing up for a bull run according to his MACD chart. However, Bluntz insisted that Bitcoin was still expecting several more dips. He announced that he would not buy any bitcoin unless it dropped below $17,000.

Several Factors Contribute to The Crypto Market’s Current Volatility

Although Smart Contracter’s predictions have remained unrefuted so far, there is still time before his predictions get proven or discounted. Several factors, including inflation, the CPI release, and Ethereum Merge, continue contributing to crypto’s volatility. Hence crypto traders and investors will do well to be circumspect in their investment decisions.

Related Reading: Bitcoin Loses $20,000 Grip, Extends Consolidation For 2nd Straight Day

At the time of writing, Ethereum is trading around $1,470, up over 2.50% in the last 24 hours, according to TradingView data.

Featured image from Pixabay and chart from TradingView.com