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In a cryptocurrency market filled with such uncertainty as we are seeing now, only the very best of cryptocurrencies tend to minimize their damage and survive through the period. However, at other times, even the strongest tend to fail minimizing the damage due to the immense pressure from the negative environment around it.

In the past few weeks, the two top cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH) have shown conflicting responses to the selloff seen since end of August. As Bitcoin dropped past the $7000 mark for a couple of days, Ethereum has seen its price stagnate around the $220 USD mark leading to speculation of an imminent failure of the currency.

Has Ethereum lost its fighting spirit against Bitcoin?

Ethereum (ETH) vs Bitcoin (BTC)

Looking at the carts, Bitcoin has had a massive increase in returns vs Ether with the latter facing a huge race to recovery. Since the highs witnessed in January where Eth traded at 0.122 BTC, the price in satoshis has been decreasing gradually.

Price Analysis on ETH and BTC

Before dwelling into how the two heavyweights got where they are we better understand how they have performed over the course of the year and predictions to future prices.

Bitcoin (BTC/USD pair) in 2018

Bitcoin has remained the only coin to hold its position on the charts since the start of the cryptocurrency generation. The 90% dominance shown by Bitcoin in the crypto market has dropped significantly from 2009 when the protocol was started.

BTC/USD Chart since 1st January 2018 (Image: Coinmarketcap)

Today, Bitcoin is at 54% dominance of the market trading at $6,329.05 USD, with a total market capitalization of $109,238,983,888 USD. The coin has seen its price drop by 55% since the start of 2018, and a total of 68% since its all-time high (ATH).

Etherrum (ETH/BTC pair) in 2018

Ethereum on the other hand is trading at $196.64 USD, a year to date low, totaling a market capitalization of $20,031,596,784 USD, quite far behind Bitcoin. This price signals a 3.5% decrease in the last 24 hours and 85% decrease since it hit its ATH in early January.

Chart showing ETH/BTC pair since January 01 2018 (Image: Coinmarketcap)

Ethereum has however had a dismal performance against the pioneer coin, BTC seeing its price gradually fall from 0.11724 BTC in February to 0.0311189 BTC today. This represents the lowest ETH/BTC pair has been since March 2017.

As Bitcoin keeps on setting the pace amongst cryptocurrencies, Ethereum is falling as the “World’s best smart contract” blockchain.

What are some of the reasons Ethereum continues to fall with Bitcoin’s rise?

1.     Bitcoin’s dominance

Since the start of blockchain technologies, Bitcoin (BTC) has continued to be the dominant crypto in the market. This has worked against Ethereum as the latter’s market pairs are also getting dominated by BTC’s pairs.

This is what I mean…

In the past few months of the year, Ethereum took up a large market share of token pairs on exchange, challenging Bitcoin’s supremacy. However, since May, coins with both ETH and BTC pairs have seen a drop in volume on the former as the latter pair increases daily volumes.

2.     Stiff competition on Ethereum lacks on Bitcoin

“What’s a mob to a king?” – Bitcoin since inception in 2009

As much as prices have fallen in 2018, development across the field has seen massive improvements as cameras move away from the foundations managing the blockchain projects. This has worked against Ethereum more than for the project. The rapid development in the field of blockchain, especially smart contract platforms has seen better, faster and more efficient blockchains such as Stellar (XLM), XinFin Network (XDCE) and Cardano (ADA) provide stiff competition to Ethereum’s open source project.


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