Why Ethereum’s price is outperforming Bitcoin after Saturday’s crash
Even though the crypto industry as a whole witnessed a major correction yesterday, ETH's gain/loss ratio stands at a near even +0.3%.
- Analysts believe that if ETH is able to maintain its current support level of AUD$5,500, it will be able to rise and possibly hit a new all-time high in the very near future.
- A recent study claims that more and more investors are beginning to turn to ETH as a long-term store of value (SOV) when compared to BTC.
- Ethereum's market dominance index (DI) is currently hovering close to the 22% mark for the first time in many months.
Despite the marketwide bloodbath that was witnessed over the last 72-odd hours, Ethereum, the world's second-largest cryptocurrency by total market capitalisation, continued to showcase a high degree of resiliency, showcasing weekly losses of 2.5%. At press time, ETH is trading at a price point of AUD$5,950.
Even after all the volatility, Ethereum has continued to outperform Bitcoin recently, with the latter's market dominance index (DI) dropping as low as 38.7% and the former's DI growing to 21%. Analysts believe that if bulls are able to keep ETH's price above the AUD$5,500 range, then a new all-time of AUD$6,900 (or more) could be on the cards. Conversely, if the price target cannot be maintained, then a dip to AUD$4,800 may be witnessed.
Since 4 December, a growing chorus of voices seems to be suggesting that investors are now beginning to view ETH as a hedge against Bitcoin's volatility, with a recently published study noting that the ETH/BTC pair has performed remarkably well despite BTC/USDT being faced with immense turbulence in recent weeks. Providing his take on the matter, Lukas Enzersdorfer-Konrad, chief product officer at Bitpanda, was quoted as saying:
"The number of active addresses on the network continues to climb while the net issuance of ETH continues to fall, which might be the main reason for its rapid rise."
Major hot wallet hosted on the Ethereum blockchain hacked
As per reports, crypto exchange BitMart revealed that it had been on the receiving end of a US$200 million hack that emanated from a compromised hot wallet hosted on the Ethereum and Binance Smart Chain (BSC) blockchains. Identified by blockchain security firm PeckShield, the firm noted that the origins of the attack can be traced back to a US$100 million transfer that took place on the Ethereum blockchain followed by another concurrent hack that saw $96 million worth of the exchange's BSC reserves being siphoned off.
In all, it is estimated that the hackers were able to have their way with more than 20 tokens including a host of prominent altcoins such as BNB, SafeMoon and BSC-USD alongside meme-currencies such as BabyDoge, Floki and Moonshot.
Disclosure: The author owns a range of cryptocurrencies at the time of writing