Analysts at cryptocurrency financial services company Matrixport recently shared their views on the comparative values of Bitcoin (BTC) and Ethereum (ETH). Here's a summary of their findings.
Bitcoin recently broke out of the $26,000 to $27,000 range. Matrixport analysts said they will remain bullish as long as the price remains above $27,000.
However, the lack of significant progress caused trading volume to drop to $11 billion and Bitcoin price to decline by -4%. Despite this, Bitcoin is expected to continue to attract the most attention, even with the launch of a spot-based ETH product in the US, according to analysts.
On October 2, 2023, three ETFs based on the price of Ethereum futures were launched. However, these ETFs saw very little trading volume in the early days.
According to analysts, the main disappointing features of the Ethereum network are the lack of user activity and the lack of interest in NFT minting transactions. The monthly fee collected by the ETH network in September 2023 was only $92 million, the lowest since December 2022.
According to Matrixport analysts, Ethereum can no longer be considered “ultrasound Money” as it has once again transformed from a deflationary asset to an inflationary asset. On the other hand, according to analysts, Bitcoin can be seen as a macro-hedging tool as its supply is limited to 21 million units.
“Ultrasound Money” is known as a phrase used by ETH maximalists to describe the superiority of ETH.
As a result, Matrixport analysts argue that there are good reasons to be bullish on Bitcoin. However, despite the upside potential of altcoins if the bulls bounce back, it remains difficult to identify fundamental catalysts supporting ETH or other altcoins.
*This is not investment advice.