The State of Ethereum

A lot has happened in the crypto ecosystem since the last updated Bitcoin post at the $9,176 June range. After breaking out of that range, we reached new highs in August topping $12,500. Up until 2 weeks ago, Bitcoin experienced a major 25% breakout move to the upside following a 3 month consolidation period between $9,800 & $12,500. We reached new highs in October 2020 now at $ 14,100. But how has Ethereum been performing in comparison? Let’s take a look

Going back to the expansion out of the June- August range, Bitcoin rose 40% while Ethereum outperformed by pumping over 118%.

Fig. 1 Bitcoin vs. Ethereum July 2020 — August 2020

However, the dynamics have changed this time around. Ethereum is massively under preforming USD and BTC , only capturing a 5% move to the upside compared to Bitcoin’s most recent 25% gain in October.

Fig. 2 Bitcoin vs. Ethereum in October 2020

Bitcoin’s outperformance can be contributed to the current narrative right now in the institutional space. The demand for Bitcoin in the wake of economic uncertainty, many are pricing it in as the ultimate store of value hedge against Central Bank sanctions those of which include the constant printing & injection of dollars into the US economy with quantitative easing.

In the wake all of this, where does the future for Ethereum lie, the second largest cryptocurrency?

Although ETH has been very quiet, this makes for the perfect storm. Many projects and users of ETH ran into expensive costs of using the blockchain, the gas fees, and scaling problems during the DeFi craze. An overall air pessimism looms Ethereum as other projects like Polkadot, Chainlink are catching more traction. This is where I’d expect ETH to push their first movers advantage as the first global, open-source platform for decentralized applications. ETH 2.0 is expecting a release coming by the end 2020 (as said by devs). Not only is this a great narrative for a short term rally, If ETH 2.0 addresses their issues with these upgrades smoothly, it will be the Bitcoin standard for the future of the decentralized internet.

Ethereum Currently November 1st 2020

Thoughts of an Early Crypto Adopter