Earlier this month, Bloomberg revealed that Ethereum’s year-to-date performance has been significantly higher than Bitcoin’s for two years now. Bitcoin proponents, unfazed by the recent developments, have their eyes peeled for when Bitcoin finally hits $100,000; as they should, given that multiple indicators have validated the possibility of Bitcoin attaining said price this year.
However, underestimating Ether bulls in the process may not be such a good idea as Ether is primed to dominate the market and possibly attempt to take on the big bull.
ETHUSD Chart By TradingView
Supporting data from on-chain platform CryptoQuant shows that Ethereum’s exchange NetFlow is rising meteorically. On the other hand, Ether’s reserve for all exchanges has renewed its two-year low by maintaining a downward trend movement, indicating that there are more Ether holders than sellers at this time. The new data has fueled bullish predictions for Ethereum from Ki-Young Ju, the founder of the on-chain platform.
Ju is now opining that at Ether’s current pace, the asset could hit a new all-time high before Bitcoin does. Referring to the data, he took to Twitter to state the following;
“ETH might reach its all-time high earlier than BTC in the long term. Current ETH price is closer to ATH compared to BTC.Higher demand, lower supply. ETH sell-side liquidity crisis still intensifies, while BTC exchange reserve stopped its downward trend in May.”
With the arrival of EIP-1559, the market can expect to see a supply shortage of Ether in the long term. This could carry on into the years ahead as the Ethereum 2.0 upgrade comes to fruition.
Additionally, 7 million ETH was confirmed to be staked in the ETH 2.0 contract today. 5.84% out of the total ETH supply has now been staked in the ETH 2.0 contract.
This is again very bullish for Ethereum in the long term as it implies that whales are on their toes, and are relentless in staking, as they expect prices to go past current levels in the long term.
“Another evidence that ETH is bullish in the long term. It seems whales who staked a lot of ETH to the ETH 2.0 contract before the price surge, staked a ton of ETH to the contract again. These whales seem to think the fair price for ETH is higher than 3k in the long term.” – explained Ju.