Ether Is Going to Shine Again, Steno Research Says

Over the course of the year so far, the native currency of Ethereum blockchain has experienced a rise of approximately 8%, whereas Bitcoin has skyrocketed by 43% and the CoinDesk 20 index {{CD20}} has seen a growth of almost 11%.

During the previous cryptocurrency bull run, Ether’s behavior may offer some insight. Notably, Ether saw a significant increase during the altcoin boom period, and within just about two months, its value nearly doubled relative to Bitcoin, according to the report.

As an analyst, I observed a significant spike in on-chain activities that ignited this transition. This surge was fueled by various elements such as the growth of decentralized finance (DeFi), the proliferation of stablecoin issuance, and the explosive rise of non-fungible tokens (NFTs). Notably, most of these dynamic developments occurred primarily on the Ethereum blockchain.

Earlier this week’s reduction in the Federal Reserve interest rate is expected to boost cryptocurrency transactions on the blockchain network, particularly favoring Ethereum, according to Steno’s assessment.

According to Steno’s viewpoint, it is unlikely that Bitcoin ETFs will continue to significantly surpass their Ether counterparts in terms of performance. He points out that Ether has demonstrated in the past the capacity to unexpectedly outshine its larger competitor.

According to analyst Mads Eberhardt, Bitcoin has been performing better than Ether for several key reasons:

“Ethereum’s active addresses remain strong, particularly when factoring in the growing adoption of rollups,” Eberhardt wrote, adding that the network’s transactional revenue looks to have bottomed in August.

According to asset manager Bitwise, Ether looks promising for the future. The digital currency could be considered a strategic move that goes against the norm as we approach the end of the year, they suggested in their report released on Tuesday.