(ETHE), (GBTC) – Why Ethereum Rises to New Uplands As Bitcoin Rally Cools

Stopping Bitcoin’s upward march (BTC) has shifted the focus to Ethereum (ETH) which surged past the $ 1,400 levels in the last 24 hours, hitting a record high than ever.

What happened: The second-largest cryptocurrency by market cap has been boiled down by a decentralized finance ecosystem (DeFi).

General Partner at Variant, Spencer Noon, tweets on Tuesday that there were more than 1.25 million DeFi users, a figure on the rise.

“Ethereum’s biggest use case is on a path to a product-market fit,” says Noon.

The analyst said ETH continues to “dwarf the entire crypto space” in terms of fees paid, which is now at a daily average of $ 7.25 million. Noon of the name ETH “the most useful network in the world.”

Enthusiasm for ETH has not been diminished – even by high fees – known as gas as ETH equals.

The high amounts of gas, according to Jacob Franek, a partner in the DeFi alliance, are a positive sign, Cointelegraph reported.

“This is the most direct measure of aggregate willingness to pay [demand] for block space. Ethereum now has the most valuable block space in crypto, ”says Franek.

Meanwhile, the BTC-USD pair, which has stayed afloat, may see a downward movement, according to the cryptocurrency trader Jonny Moe, according to Cointelegraph.

“Every time I start to convince myself to press bullish, the longer I stare at this chart, the more I start getting bearish again. I really feel this is going to break down and we’re closing the weekly red, and I can’t shake that again. ”

Why It’s Important: The lack of movement in BTC is leading investors to look at other altcoins.

“Bitcoin has been in range over the past few weeks, which gives time for capital to rotate” into other digital assets, “said Vijay Ayyar, head of business development at Luno, a Singapore cryptocurrency exchange, Bloomberg reported.

ETH rose to $ 1,439.33 at around 12:00 UTC, surpassing the all-time highest of $ 1,432.88 and hit January 13, 2018, according to the CoinDesk price index.

See Also: Polkadot Performs Better Bitcoin, Rival Ethereum To Join Top 5 Cryptos: What You Need to Know

On a YTD basis, ETH has returned 85.78%, while the cryptocurrency apex – BTC – has returned 20.24%.

At press time, ETH was trading 3.38% higher at $ 1,369.51 while BTC was trading 2.97% lower at $ 35,456.79.

The Grayscale Trust Ethereum (OTC: ETHE) closed 17.16% higher at $ 16.46 on Tuesday and the Grayscale Bitcoin Trust (OTC: GBTC) closed 3.27% lower at $ 38.06.

Top traders and exchanges are opening short positions at ETH thanks in part to high use of leveraged derivatives, Cointelegraph reported separately.

This could be interpreted as an indication that the major traders are not bullish on ETH, according to Cointelegraph.

Read Next: Tesla, Bitcoin More likely to halve than double value in 2021: Deutsche Bank Survey

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