Both Bitcoin and Ethereum have seen impressive growth over the past 30 days. The Bitcoin market has registered a 21.6% increase, and the Ethereum market a 19.2% increase. A recent post from Raoul Pal suggests that ETH could soon outperform BTC. He highlights some key factors that support his argument. Let’s explore the factors!
ETH Is Poised to Surpass BTC, Says Crypto Expert
The Bitcoin market is about to enter the third year of the last four-year cycle. Normally, the third year of a cycle is when the BTC market performs at its best. The trend is no different in the Ethereum market.
Pal predicts that Ethereum will surpass Bitcoin in this cycle.
Key factors to improve Ethereum performance
Here are the key factors the crypto expert highlights:
Improved regulations
The crypto regulatory framework has evolved positively over the years and is expected to improve further in the coming days. In many ways, this progress could fuel Ethereum’s growth.
DeFi utility
DeFi tokens could become very lucrative in the future as they can offer significant returns or rewards.
TradFi adoption
Since Ethereum is known for its reliability, there is a good chance it will become the chain of choice for traditional financial use cases.
Institutional investments
An increase in returns is likely to attract institutional investors, potentially creating opportunities for new, innovative financial products.
Pal predicts that while Ethereum could outperform Bitcoin in the current cycle, it still may not surpass Solana. Interestingly, he believes that SOL is lagging behind SUI.
ETH market cycle overview
In the first year of the current cycle, the Ethereum market witnessed an annual price change of +90.8%. This year, the market recorded a return of +59.8% in the first quarter. In the second quarter it fell to -5.80%. In the third it fell further to -24.5%. So far this quarter, the market has registered a +12.2% increase. Since US Election Day, the market has risen 21.40%. Currently, the ETH price stands at $2,909.13.
In conclusion, the crypto expert suggests that favorable regulation and institutional interest could fuel Ethreuem’s growth against Bitcoin, making ETH an important asset to watch in this cycle.
