Ether At All-time High; Outperforming Bitcoin, Things You Should Know!

  • January 24, 2021 12:24 AM AEDT
  • Kunal Sawhney
    Kunal Sawhney
    CEO Kunal Sawhney
    2781 Posts

    Kunal Sawhney is founder & CEO at Kalkine and is a richly experienced and accomplished financial professional with a wealth of knowledge in the Australian Equities Market. Kunal obtained a Master of Business Administration degree from University of T...

Ether At All-time High; Outperforming Bitcoin, Things You Should Know!

Ethereum or Ether, the world’s second largest cryptocurrency has climbed an all-time high of USD 1,429.00. The cryptocurrency is a major token that empowers the ethereum blockchain network, on which a majority of DeFi-based applications are being built.

Ether or the token of the ethereum network provides the holder some rights to manage the blockchain network as a reward while giving some prerogatives in the development of DeFi-based applications built upon the ethereum network.

Image Source: Megapixl

The ongoing paradigm shift in decentralised finance is one of the many factors which is keeping the prices of cryptocurrencies buoyant, including Ether.

To Know More, Do Read: DeFi Led Sentiments Keep Bitcoin Afloat

Many top DeFi-based applications that allow consumers to borrow, lend, such currencies are based upon the ethereum blockchain network, and surmounting popularity of such applications is keeping the currency afloat while attracting the investing community over the opportunity to generate additional alpha on their investment while keeping the beta almost similar to that of any cryptocurrency.

To Know More, Do Read: Yield and Liquidity Farming - Tools to Generate Alpha in the Crypto Space

Some of the most prominent DeFi-based applications that had played a central role in attracting towards Ether are as below:

  • Maker: A DeFi-based lending platform
  • Synthetix: A DeFi-based investment platform
  • Compound: A DeFi-based lending platform
  • InstaDApp: A DeFi-based smart wallet

In the recent past, the digital currency has topped its previous bull market peak, two months later than Bitcoin. However, while Ether has been slow to follow the previous top as compared to Bitcoin, the currency has clearly surpassed total returns from Bitcoin on a YTD basis.

Ether has delivered a total return of 79.48 per cent on a YTD basis, considerably up against the total return of just 19.11 per cent delivered by Bitcoin.

Further, despite a slow runner, Ether has outperformed Bitcoin over the medium-term as well with one-year return from Ether outperforming the same from Bitcoin, considerably.

Image Source: Kalkine Group, Data Source: Refinitiv Eikon Thomson Reuters) as on 21 January 2021

Moreover, while Ether is on a bull run, and even surpassing the total return from Bitcoin in 2021, many industry experts are closely watching this space.

Whist Ether is gaining some mainstream popularity among the investing community, another development on ethereum blockchain network front, i.e., Ethereum 2.0 is keeping the eyes of investors glued to it.

Image Source: Shutterstock

On 1 December 2020, Ethereum took a major step towards the positioning of the blockchain project to be a censorship resistant base layer operating in the background of tomorrow’s internet by announcing the release of a new blockchain – the Beacon Chain.

Since the announcement, Ethereum, and in turn, Ether has garnered significant interest from tech geeks and investors, with even many large institutions participating in the same.

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK