The world’s second-largest cryptocurrency by market capitalization, Ethereum has seen an 8% growth on Wednesday to exceed $3,880 in value over the last 24 hours. This follows the liquidation of $800 million worth of short positions, says Tom Dunleavy, partner with Master Global. CoinDesk Senior Analyst James Van Straten comments, “Increases further recalling the crypto bull run of 2021, and also a broader capital injection”.
The Bitcoin market dominance peaked on November 21 at 61.85% and then slid to 54.84%, and that is an area that Ethereum capitalized on that shift. “ETH is playing catch-up as Bitcoin remains flat,” Van Straten observed.
This rally in Ethereum was echoed throughout the CoinDesk 20 index. Even as the overall index advanced a relatively minor 1.83%, a few altcoins broke double digits. Ethereum Classic rose 22%, Filecoin 18%, Polkadot and Uniswap 17% and 16%, respectively.
Despite the words of Federal Reserve Chair Jerome Powell at The New York Times’ DealBook Summit, Bitcoin hardly reacted. Powell only restated the cautious position of the Federal Reserve concerning crypto integration into the financial system. He described Bitcoin as “a speculative asset akin to gold” and emphasized that it poses no competition to the U.S. dollar.
Recent price action by Ethereum revives hope about its potential, even while facing stiff competition in the form of Solana and similar platforms. With regulatory clarity and growing institutional interest becoming more visible, analysts say there is much room for the growth of Ethereum.
The market observers will be on their toes about whether it’s a temporary catch-up in the shadows of Bitcoin or if this resurgence sets off the broader altcoin rally as long as ETH continues on its trajectory upward.
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