1. What drivers do you see for Ethereum’s current rally?
If Bitcoin is digital gold, then Ethereum is digital oil. While BTC is utilized as a store of value, Ethereum provides value in its utility as the base element for an endless amount of digital products and applications.
We’ve seen these applications continue to grow and gain traction in the mainstream, with new crypto exchanges coming online and enhanced speed and scalability with the launch of Ethereum 2.0.
2. To what extent has it risen as bitcoin has grabbed attention versus any factors specific to Ethereum?
It comes as no surprise that recent gains in Ethereum have been highly correlated to Bitcoin. With institutional investors clamoring to gain entry into the digital asset space, nearly all digital asset ‘boats’ have benefitted from the rising crypto ‘tide.’
Speaking strictly from a correlation standpoint, BTC and ETH mirror each other with near 88% efficiency, closer than any other major crypto pairs.
3. Are investors basing their decision to buy Ethereum on any concrete data? If so, please share details – for example, are you aware of any fundamental changes to how Ethereum is used in the real world – the number of users, nodes, value exchanges on smart contracts, and so on.
Ethereum continues to dominate as the leading Turing complete layer 1 blockchain for scaled applications. Financial exchanges are using it for multi-billion dollar exchanges of bond contracts. The US just allowed for stablecoins and blockchains to be eligible for tracking regulated transactions (which will be done with ETH or some version). The multibillion-dollar Defi space is 95%+ built on Ethereum.
With the successful launch of Ethereum 2.0’s beacon chain, this blockchain’s likelihood and scale are growing in uses, usability, and value.