Ethereum is on the moon. On Tuesday night alone, the second largest cryptocurrency made up nine percent. Everything about the background of the hype.
There can no longer be any doubt that Altcoin is season. While Bitcoin (BTC) has been trading in the range between 50,000 US dollars (USD) and 64,000 USD since mid-February, Ether (ETH) is chasing from one all-time high to the next. On the night of Tuesday, May 4th, the second largest cryptocurrency by market capitalization hit a new high at USD 3,438. This means that ETH is up around 36 percent in the weekly chart.
Bitcoin, on the other hand, lags behind with a gain of only 3.6 percent on a weekly basis.
If you look at the crypto heat map, the extent of the old season becomes clear. On a daily basis, ETH is up almost nine percent while BTC is down three percent. The BTC dominance, i.e. the share of Bitcoin market capitalization in the total market capitalization, is 47 percent, as low as it has been for a long time.
The reasons for the ether pump are still unclear. One possible explanation is the growth of DeFi (Decentralized Finance) applications on Ethereum. As we have already reported, are according to the current status $ 91 billion housed in DeFi protocols on the Ethereum blockchain. Of that, the lion’s share ($ 11.88 billion) goes to AAVE. Expectations about the progress of the DeFi hype could well have contributed to the price pumps at Ethereum.
Bitcoin remains bullish
But even Bitcoiners shouldn’t bury their heads in the sand in view of the success of the second largest cryptocurrency.
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The overall picture is decisive for long-term oriented BTC hodlers – and with regard to this there should soon be more to laugh about for Bitcoiners. Because in the long-term trend, Bitcoin is still in a bullish phase. “When in doubt, zoom out” – when in doubt, please zoom out. This is a well-known bon mot from Bitcoin circles. Of course, the big picture is meant. All too easily, short-term fluctuations in the Bitcoin rate can lead to a trend reversal that does not exist at all. So let’s zoom out: “Computer, enhance!”.
If you compare past bull markets with the current one, you have to realize that there is still a lot of room for improvement.
The top of the previous Halving epoch was around $ 20,000, which was pretty much a hundred times the floor of the previous epoch at $ 200. If you apply this template for the current epoch, BTC would have to top out at around USD 300,000, since the bottom was last around USD 3,000. It must also be noted that the length of the bull markets increases to the power. While the top of the second bull market was already set up 750 days after the “surrender” (absolute bottom), it was already over 1,050 days in epoch 3 (orange line).
So it should be a while before BTC has found its preliminary cycle top.