ETH follows Bitcoin, hits all-time high
An old saying goes: “When Bitcoin goes up, ETH goes up too”.
Only a few hours after Bitcoin reached a new ATH of 67,276 US dollars thanks to a successful trading day for the first Bitcoin futures ETF, the ETH set its own record of 4,372 US dollars, the one on May 12th. set mark of $ 4,357.
ETH 4-Hour Price Chart | Source: Tradingview
The prices of the two top cryptocurrencies are significantly correlated.
According to Cryptowatch, on a scale of -1 to 1 (meaning assets are moving in exactly the same or opposite direction), BTC and ETH had a correlation coefficient of 0.82 for the past 30 days. The last time they were uncorrelated was in November 2017.
Since then, it has been strange not to find any coefficients below 0.6 – an annual rate of 0.68. This happens regardless of whether ETH has its own value proposition.
BTC-ETH correlation for the last 30 days | Source: Cryptowatch
While Bitcoin has established itself as a store of value and is accepted by El Salvador as legal money, ETH has done a lot of its own work.
Developers using the smart contract-enabled network pioneered DeFi many years ago, which allows anyone to lend, borrow, or swap assets without financial intermediaries, as well as NFTs. Digital vouchers represent unique assets.
But both have only really increased significantly in the last 15 months.
“DeFi Summer” heralds the awakening of unused protocols on Ethereum. The $ 5 billion value set in DeFi logs in late August last year is just a grain of sand compared to the current $ 100.8 billion. It did so despite the fact that Solana, Binance Smart Chain, and others were gaining market share.
NFT first gained popularity thanks to the 2017 CryptoKitties craze, which not only slowed the network cool, but that year exploded into a global phenomenon with athletes, actors and artists all making money. According to the tracking site NFT Non-fungible, The NFT market had sales of $ 1.8 billion last month.
So it wouldn’t be fair to say that Ethereum “follows” Bitcoin. But since most cryptocurrencies are up today – SOL is up 17%, LUNA is up 7%, and so on – it’s fair to say that the big week of Bitcoin has got people all over the world excited about electronic money.
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According to AZCoin News