During the US election rally, Ethereum (ETH) and other base-layer blockchain cryptocurrencies that compete with it, such as Sui Coin (SUI), Solana, and Polkdadot (DOT), experienced significant gains. Ethereum’s price increased by 25%, while its competitors saw increases of 74%, 56%, and 44% respectively.
Despite this, some investors are cautious about Ethereum reaching the $4,000 level by the peak of the current crypto macrocycle. Amberdata’s Director of Derivatives, Greg Magadini, mentioned that Ethereum faces headwinds as the value proposition of “sound money” has shifted to inflation supply due to nearly all DeFi transactions being executed on Layer-2 services.
Some analysts are positive about Ethereum’s future, citing bullish technicals and predicting that it could outperform Bitcoin by the end of the current macro market cycle. Ethereum’s DApp volume has also increased, showing a shift in investor sentiment and ETF inflows. Institutional investors’ support for Ethereum is also noteworthy, as they are not only holding Ether but also locking it into staking contracts to secure the platform for yield.
This demonstrates their conviction in Ethereum’s long-term growth prospects.
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<p>The post Ethereum’s Competitors Rally During US Election: A Look at the Market and Potential Future Trends first appeared on CoinBuzzFeed.</p>
