The recent liquidity crisis could be the breakthrough ether needed to dethrone bitcoin as the most valuable cryptocurrency. It’s a neck-to-neck competition between Ether and Bitcoin or the return to all-time highs.
The most recent data science analysis shows that Etehereum’s native token, Ether (ETH) has pretty obvious chances to beat Bitcoin (BTC) as the world’s most valuable digital asset.
On Wednesday, Ki-Young Ju, the CEO of on-chain data analytics service provider Crypto Quant, pointed out at the data-oriented “sell-side liquidity crisis” could catalyze for Ether to surge its prices all up to the top.
However, with Bitcoin up over 50% against the lows of $29,000, altcoins have suffered fluctuation and their market position has weakened, with Ether as no exception. The largest altcoin has ever touched is the $3,000 level, this week, the surge is now in the process of going down again.
It means altcoins are testing their ability to stay composed against the market’s bullish trend notable volatility.
Even though Bitcoin has received all the market attention overreaching the $50,000 mark, but a vast majority of the analysts have remained positive over the long-term performance of ETH after the company’s successful deployment of its new framework in London.
It occurs to many analysts that Ether is rapidly diversifying its investment philosophy as the company is looking forward to expanding its operations in multiple regions. However, the U.S and U.K remain the top destinations.
The liquidity shortfall can push the ETH/USD to new historic heights in a longer period before BTC/USD do the same. Ki summarized that “$ETH has pretty good chances to surpass BTC in terms of most prestigious cryptocurrency.”
“The current situation shows that BTC is in high demand, with lower market supply. People have held BTC given the fact that it could surpass $50,000. However, $ETH sell-side liquidity crisis being further intensified.”
This means people are holding ETH coins for the longer-term gains as compared to BTC’s short-term selling position.
However, the data analysis also showed the Bitcoin reserve numbers are also declining since the month of May only in the month of July, the numbers have increased. From the peak of $2.54 million, the reserves have dropped down to 2.44 million, just within two weeks.
One of the biggest reasons behind this is that investors are withdrawing Bitcoins to invest in the ETH for long-term security and sustained financial gains. That’s one of the biggest reasons ETH is improving its exchange framework and looking forward to worldwide expansion. It is the first time that investors in the crypto market are looking for long-term gains.