Can Ethereum trade Bitcoin and drive the next round of market trends?

Since Ethereum saw strong potential improvements in 2016, there has been constant debate as to whether Ethereum can outperform Bitcoin as the two most important investments in the cryptocurrency market. In May of this year, Ethereum co-founder Vitalik Buterin said in an interview that if the production of Bitcoin technology does not change, it will be on the verge of extinction. Beyond the market value of Bitcoin. Days later, Wall Street tycoon Goldman Sachs released a report titled "Research Global Macro" and released a report on the concept, user base, and iteration rate of the technology exit from Bitcoin dominance. in the cryptocurrency market.

Historically, as of June 19, 2017, the ETHereum market price was once close to Bitcoin with the smallest difference being less than 7 percentage points, including Bitcoin markets. At that time, Bitcoin's price was $ 2,599.89 and Ethereum's price was $ 354.90 (according to data from the Ouyi platform), with an ETH / BTC trading price above 0. 13, the highest level currently. Then it went on the downside for over four years, and since then the 0.1 trade target has become the "small target" sought by Ethereum supporters.

Looking at the market for almost half a month, the value of Bitcoin and Ethereum entered the update after hitting new highs on November 10, 2021 HKT. . From $ 69,040 to $ 55,342, it fell 19.85%, while Ethereum fell 18.75% from its high of $ 4,871 to $ 3,958. It is lower than Bitcoin. On the other hand, at the same time, the ETH / BTC exchange rate fell from at least 0.06937 to 0.0758, indicating very strong trading.

Then the old question that was brought up above, whether Ethereum can outperform Bitcoin, could be a subject for review, and a context in which the bull market has appeared with an optional extension (if the market is different, Ethereum will replace Bitcoin). the next market environment?

The number of addresses containing 0.1 ETH or more has reached a new high.

According to Glassnode data, as of November 24, the number of addresses contained 0.1ETH or more 6.2 million, up to 6.25 million, high data.

Change the number of addresses beyond 0.1 ETH, the data source glassnode

For comparison, let's look at the exchange rate for holdings greater than 0.01 BTC (US $ 440, 0.01 BTC - up to US $ 560). In addition, according to Glassnode data, as of November 24, the number of addresses exceeded 0.01 BTC out of 9.26 million, a high figure.

Change the number of addresses held above 0.01 BTC, the glassnode data source

However, given that Bitcoin was born five years before Ethereum, simply comparing the number of addresses would seem inappropriate, so it's best to intercept the data after January 2021 and do an additional comparison. As of January 1, 2021, there were 8,467,000 addresses containing more than 0.01 Bitcoin and 3,626,000 addresses containing 0.1 Ethereum or more. In terms of earnings, holdings held 0.01 bitcoin or more by 9.37% from the start of the year, while holdings held 0.1 Ethereum or more up 72.4%. Goldman Sachs has recognized some of them. Some are speculating by announcing the “Global Macro Research” report.

Ethereum 2.0 integration is coming, Ethereum can integrate the whole deflation model

In the article "Ethereum 2.0 released January 1, what information is important?" (click to go), the destruction of ETH after the EIP-1559 deal was announced online slowed the spread of the Ethereum network. According to statistics from the owner of Ouke Cloud Chain, since November 25, 2021, the entire network has burned over a million ETH, and there have been numerous deflationary events since the first day of deflation in the ninth month. . From a business standpoint, market participants will have higher expectations for the future of Ethereum, as the balance is higher than advertised.

Ethereum Network Acquisition and Burning Details Following the release of EIP-1559, data provided by cloud chain owner Ouke.

In a statement from Goldman Sachs quoted above, it was also stated that "Bitcoin is not short enough to support the store of value function, and Ethereum will replace it." From this perspective, Goldman Sachs believes that the secret to market success at a price is in demand, not less. Rare commodities such as osmium are not store bought assets, while growing at a rate of 2% per annum and are still recognized as retained assets. Buyers are expected to price higher than existing buyers, resulting in higher volatility and the creation of a financial bubble.

On the other hand, Ethereum has maintained an inflation rate of 4-8% for most of the past 6 years, and there is no limit to the total amount of the production process, but it should be noted that Ethereum is a unit. The total internal revenue is a stable value, and thanks to EIP-1559, given the current state of rapid growth of the Ethereum ecosystem, the oil consumption of the network may also increase accordingly. . Therefore, it is important to reduce the rapid and unreliable growth of new products compared to low-cost products to control the cost. Ethereum's current model, which combines average inflation with exchange rate volatility, is simpler and more promising for the future of humanity. with the key infrastructure required for the blockchain.

Recently, sales refused to deepen

Finally, going back this far, we know that for most investors in the market, moving assets to a company like Ou Yi is the best way to sell. Hence, it is possible to understand the pros and cons of the trader willing to sell in the Ethereum exchange at the location of the trading venue. Looking at Glassnode statistics, it can be seen that since mid-April 2020 the share of ETH per trading platform space in all tours has increased slightly from May to July of this year, but has seen a decline. . Despite the exclusion of new announcements at this time, the number of Ethereum in the enterprise platform address space has grown from a high of 22.51 million to an average of 14.18 million. April 2020. Over the past 19 months, Ethereum's drop in the company's platform address has been more than 37%. This situation could mean traders are switching their Ethereum to a wallet, DeFi smart contract, or ETH2. Of course, the location of the Ethereum miner is also an important factor to note.

Change the Ethereum number in the trading platform address, the glassnode data source

However, where the ultimate Ethereum flow would be, the goal was to reduce aftermarket sales, which for some reason affected the unsatisfactory sales.

Of course, the above is more inaccurate and strictly consistent with the chain's exchange information, and the chain's visible data in the crypto industry is also difficult and unknown, such as a change in the mindset of investors in the market traditional financial. and crypto market. By fully familiarizing yourself with the above information, analysis and decision making can help you make the right investment decision.