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April 6, 2022

Large-Cap Altcoin Replacing Bitcoin (BTC) As Driver of Crypto Market Trend, According to Glassnode Co-Founder

By Daily Hodl Staff

Market intelligence firm Glassnode says leading digital asset Bitcoin (BTC) has been usurped as the best indicator of the crypto industry’s momentum.

In a new analysis, Glassnode co-founders Jan Happel and Yann Allemann note that leading smart contract platform Ethereum (ETH) appears to be the crypto market’s new benchmark.

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“Looking back to the time since 2021, we can see a trend of Bitcoin losing its position as the key driver behind the crypto space, especially when comparing the performance between Bitcoin, Ethereum, and the top 20 traded coins.”

Source: Glassnode

The Glassnode co-founders also say that ETH could become more appealing to blue-chip investors after it transitions into a proof-of-stake blockchain later this year.

“Ethereum has come back to the forefront, as news of a successful merge on the Kiln testnet made the estimated June merge (meaning the transition to proof-of-stake) much more realistic.

This transition, if successful, will make Ethereum much more attractive to institutional investors following ESG (environmental, social, and governance) mandates; it will also lead to a massively reduced supply as ETH will turn into a deflationary asset.”

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Developers expect Kiln to serve as the final public testnet before ETH converts to a proof-of-stake mechanism, according to the Ethereum Foundation.

Happel and Allemann told their 52,100 Twitter followers in late March that ETH looked stronger than Bitcoin “from a fee perspective.”

Ethereum is trading at $3,458.25 at time of writing. The second-largest crypto asset by market cap is up more than 31% in the past month.

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Featured Image: Shutterstock/Alberto Andrei Rosu/Natalia Siiatovskaia

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