Ether Upgrade Causes Price Increase While Crypto Market Dominance Beats that of Bitcoin
On Thursday, the price of Ethereum tokens increased after the network underwent a software upgrade. The purpose was to move the cryptocurrency to a better blockchain network that’s more environmentally friendly. This development has helped Ether, the world’s second-biggest cryptocurrency, gain an edge over Bitcoin, it’s far bigger rival. Of course, crypto enthusiasts increasingly accepting Ether as a suitable digital asset for investment also played a role.
On Thursday, the Ethereum network launched the ‘London’ upgrade. In less than two hours, the token’s prices gained 6 percent, reaching a new three-month high and surpassing $2,800. The upgrade was also meant to overhaul the network’s entire fee structure. It would allow users to predict transaction costs easily while making them less expensive as well. The rally period for Ether started shortly after the upgrade went live around 8:30 AM.
In this case, miners can expect revenue to fall by as much as 50 percent. They run complex algorithms that require large amounts of power to run. This is so they can verify crypto exchanges and transactions on users’ behalf. But even so, the London upgrade is a step in the right direction for Ether as they try to be the environmentally friendly crypto. They will do so by requiring lesser work from miners.
The surge in prices increased Ethereum’s market cap to over $325 billion. It also lifted the year-to-date gains to over 280 percent, which is far greater than Bitcoin’s modest 33 percent.
A senior commodity strategist at Bloomberg Intelligence, Mike McGlone, covered Ether’s latest performance in a note on Wednesday. He stated that for the last two years, Ether has been doing better than Bitcoin. He also emphasized that the crypto community is expecting more of it. The note explained that increased adoptions of the crypto and the recent upgrade would expedite future growth.
Amid the crypto market’s recent downfall, institutional investors are looking away from Bitcoin and towards other cryptocurrencies. This is according to a report that CoinShares released on Monday. It also revealed that investors had reduced their Bitcoin holdings in 10 out of the last 12 weeks. For Bitcoin, this figure is much lower at an impressive six weeks. This shows the crypto’s ability to retain investors.
In the midst of this Ether pandemonium, the trading volume of NFTs reached a whopping $171 million in the last month. This was a 338 percent increase from last month. This comes from data from the blockchain company OKLink. This should come as no surprise, considering that the digital collectibles operate using the Ethereum network.
All in all, Bitcoin’s market dominance fell from 70 to 40 percent. On the other hand, Ether’s market dominance went from 10 to 20 percent.