Ethereum (ETH) is witnessing a robust rise in value, even as Bitcoin experiences a downturn. The altcoin has notably outperformed several competitors, drawing significant market attention. On November 28, ETH hit its daily peak, showcasing a proactive response from traders.
What Drives Ethereum’s Strong Performance?
Ethereum’s impressive standing compared to other cryptocurrencies suggests a notable shift in market trends. While Bitcoin battles volatility, ETH’s ascent is capturing investors’ curiosity.
Since launching in 2015, Ethereum has set itself apart with its smart contract capabilities. The Cancun update, introduced on March 13, 2024, is designed to improve the network’s scalability, security, and user experience. Such upgrades are crucial for preserving Ethereum’s technological edge.
How Are Market Expectations Shaping Up?
From the year’s start, ETH has achieved a 33% performance increase. Although Bitcoin’s dip has diminished ETH’s annual gains from over 50% to 33%, an investor who invested $10,000 in ETH at the start of 2024 would see a profit of around $3,317 after nearly eleven months.
Vitalik Buterin highlighted that Proof-of-Stake (PoS) technology offers superior decentralization compared to traditional Proof-of-Work (PoW) systems.
Ethereum currently holds a market capitalization second to Bitcoin’s $1.73 trillion, together comprising 83% of the entire cryptocurrency market. Notably, Binance contributes significantly to Ethereum’s trading volume.
The shift to PoS technology has not only lowered Ethereum’s energy consumption but also bolstered its security. This strategic transition enhances Ethereum’s sustainability and prospects for future growth, further instilling confidence among stakeholders.