Ethereum (ETH) Market Cap Growth Falls Behind Despite Positive Year – Details
According to a report from crypto analytics firm IntoTheBlock, Ethereum’s market cap has increased by 85% over the past year, reaching its current value of $275.98 billion. However, compared to other major assets, ETH’s performance still has room for improvement, especially considering the positive developments it has experienced in 2023.
Ethereum Underperforms
Ethereum (ETH) has been a major player in the crypto space in 2023. As the second-largest cryptocurrency and the most prominent altcoin, it has continued to attract investor interest for several reasons.
One of these reasons is the Shanghai/Capella upgrade in April, which has led to a significant increase in ETH staking activity as investors can now freely withdraw their assets from the Ethereum network.
Furthermore, Ethereum has also seen an increase in institutional adoption with the launch of Ether Futures ETF in the US and a growing competition among asset managers to gain approval for the first-ever spot Ether ETF. However, these developments have only resulted in an 85% increase in altcoin market shares, which, while impressive, is overshadowed by the performance of other cryptocurrencies.
For example, Bitcoin, the market leader, saw a 163% gain in market cap value, while other top coins such as ADA and AVAX experienced gains of 145% and 341% respectively.
Trending meme token Bonk (BONK) recorded the largest market cap increase of 1,574%, followed by Optimism (OP) with 916% and Solana (SOL) with 744%. Other notable mentions include Celestia (TIA) and Chainlink (LINK) with 459% and 199% respectively.
ETH Price Prediction
At the time of writing, Ethereum is trading around $2,292.13 with a 0.04% gain on the last day. Looking at the token’s daily chart, ETH is currently aiming for the $2,400 resistance zone, which has proven to be effective in recent weeks.
Interestingly, price prediction site Coincodex reports that investor sentiment surrounding Ethereum is strongly bullish, with a Fear & Greed Index of 71. This indicates that many investors currently view altcoin as a favorable investment.
However, if the $2,400 resistance zone holds strong again, ETH could experience a price dip and find support around the $2,120 price region. In the presence of overwhelming selling pressure, Ethereum could fall as low as $1,921.
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