Market Pares Losses, Ether Outperforms Bitcoin
As world stock markets go into free fall over renewed COVID-19 fears amidst the Omicron variant, cryptocurrency markets are defying the trend and climbing upward as Wall Street sees red.
After a series of brutal “Black Friday” sell-offs and a severe market correction that pushed both Ether and Bitcoin down from record highs set mid-November, both coins appear to be paring their losses. In addition, an impressive milestone is taking place for ETH, outperforming Bitcoin by the greatest differential since its inception in 2015.
Despite the fact that Bitcoin’s $1.1 trillion market cap is still double that of Ether, the latter is reaping benefits from becoming the dominant blockchain for decentralized applications globally. A recent upgrade on its networks made the blockchain faster and more scalable, increasing its popularity and usage amongst developers and traders alike. Moreover, ETH is increasingly associated with supplemental sectors in crypto such as non-fungible tokens (NFTs), a market that generated $10 billion in sales during the third quarter of 2021 alone.
CEO of crypto platform FRNT Financial Inc Stephane Ouellette described ETHs market defying outperformance, saying “The current BTC trading window seems to associate the asset more with global currency trends, inflation hedges, etc….while ETH has, at least from a current market perception standpoint, higher correlations with the growth of crypto sub-sectors.”. And the good news extends well beyond the heavyweights in the space.
Canine-themed cryptocurrency Shiba Inu (SHIB) has managed gains in excess of 30% after US-based crypto exchange Kraken announced it would enable SHIB trading on its platforms. And not to be outdone, Solana’s native cryptocurrency SOL was also rallying towards a $225 price point, rising nearly 7% in one day as part of an upward price recovery.
At the time of writing, Bitcoin was exchanging hands at $56,372 up from last week’s lows of $53,700, while Ether stood at $4,528 — up around 520% from last December. And despite snags in its recent pricing, analysts have reissued a $400,000 BTC price forecast and 15,000 for Ether.
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