- Ether price has surged 27% in the past 60 days, outperforming Bitcoin’s 24% gains and competitors like BNB and SOL which faced corrections.
- Ethereum benefits from staking rewards, growing activity, and dominance in DeFi and NFTs despite high fees, fueling price expectations.
- Upcoming Ethereum upgrades like the Shanghai fork aim to improve capabilities and reduce costs, but it’s uncertain if Ethereum can sustain momentum and market cap.
The price of Ethereum’s native token, Ether (ETH), has seen impressive gains recently, breaking above $2,650 for the first time since May 2022. This comes as Bitcoin’s price dropped after the approval of spot Bitcoin exchange-traded funds (ETFs) in the US. Ethereum’s rise seems to be driven by factors beyond Bitcoin’s ETF news.
Ether Outperforms Bitcoin and Competitors
In the past 60 days, Ether price has surged 27%, outpacing Bitcoin’s 24% gains over the same period. This is noteworthy given expectations that the spot BTC ETF approval would boost Bitcoin’s price by opening access to new investors.
Ether has also outperformed competitors like Binance Coin (BNB) and Solana (SOL), which faced corrections after rallies. BNB declined 2% and SOL dropped 3% in the week ending January 12.
Bullish Factors Behind Ethereum
Ethereum benefits from its staking rewards and growing activity. Almost 24% of ETH supply is locked in staking, fueling price expectations. The network remains the leader in value for DeFi and NFTs despite high average transaction fees of $6.30.
Upcoming upgrades like the Shanghai fork aim to improve Ethereum’s capabilities and reduce costs. The planned changes include rollup optimizations and account abstraction to lower fees. Ethereum remains dominant in smart contracts despite rivals.
Sustaining Momentum?
Ether’s rally above $2,600 seems less related to Bitcoin’s ETF news and more tied to Ethereum’s strengths. However, it remains to be seen whether Ethereum can sustain its $322 billion market capitalization and continue gaining on Bitcoin in 2023.
