Ethereum is slowly showing signs of life again, after the currency performed dramatically against Bitcoin in 2024. According to the analysts at QCP Capital, we are currently even seeing capital flow out of Bitcoin and rotate towards Ethereum.
Ethereum coming back?
Various indicators tell us that investors are slowly becoming interested in Ethereum again.
The moment is interesting, and could be a learning experience for many people. What have we seen happen a lot in recent months? Analysts did not miss an opportunity to be critical of Ethereum, and many Bitcoiners once again started “dancing on the grave” of Vitalik Buterin’s coin.
Of course, this does not mean that Ethereum suddenly has a fantastic future ahead of it, a lot still needs to be done for that to happen. But this kind of sentiment about a financial asset often marks a bottom.
Conversely, the same is true. If everyone is suddenly positive about an asset and the price has gone through the roof, a sharp correction often follows. For example, look at MicroStrategy. That went well for a long time, but from the all-time high there was eventually a quite painful fall in the price.
Positive data for Ethereum
Ethereum’s DeFi ecosystem in particular is currently going through a good period. The total value of DeFi protocols on the blockchain increased by 7% over the past week to $66.43 billion, according to data from DefiLlama.
Furthermore, the market is of course influenced by external developments. There has been a wave of optimism in the traditional financial world about the incoming administration of Donald Trump and his choice of Scott Bessent as the next Secretary of the Treasury.
Investors are responding positively to Bessent’s “3 Arrows” plan. He wants to bring the budget deficit to 3% by 2028, keep economic growth at 3% and grow daily oil production by 3 million barrels.
It remains to be seen whether he will succeed, but the markets are certainly reacting positively. And Ethereum is showing signs of life again after a long time, which is also a very welcome change for many people.
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Source: https://newsbit.nl/qcp-capital-kapitaal-stroomt-van-bitcoin-naar-ethereum/
