Cryptocurrencies, especially Bitcoin, experienced good increases in 2023. At this point, while BTC experienced a 160% increase, the largest altcoin Ethereum increased by 97%.
While the rise in ETH remains lower compared to Bitcoin, this suggests that ETH will underperform compared to Bitcoin in 2023.
However, this situation may reverse in 2024.
According to The Block, ETC Group said in its report that Ethereum could outperform BTC in 2024.
ETC Group Head of Research André Dragosch stated that ETH's upward performance will be supported by technological advances and Ethereum's position as the leading smart contract platform.
“Ethereum has underperformed Bitcoin in the last 12 months. However, this situation may reverse.
Ethereum may outperform Bitcoin in the coming year.
With the decrease in ETH supply combined with the attractiveness of ETH staking returns, the largest altcoin Ethereum may outperform Bitcoin.
Net supply issuance of Ether is at -1.1% annually as approximately 1.84% of annual ETH supply is currently burned.”
Arguing that ETH will return to its high performance against Bitcoin, Dragosch pointed out that Ethereum has consistently outperformed BTC since its inception in July 2015, except for 2023, and said, “Bitcoin's 12-month relative performance is historically backward.” “It shows a strong trend indicating a reversal.” said.
*This is not investment advice.
