There are suddenly more people talking about Ethereum in the market. It is obvious that on social platforms, slogans about the rise of Ethereum and pictures of ETH prices have appeared one after another. Not long ago, this former leader of the copycat was once ignored by everyone, intentionally or unintentionally. In the final analysis, in this round of bull market, ETH's performance is really unsatisfactory. Some people even made a table to compare the ETH price from the first to the seventh time BTC broke through 100,000 US dollars. The result is that ETH has been falling all the way, even just one step away from 1,300 US dollars. ETH/BTC has hit a new low in five years. When will the copycat season come, and whether it can come, has become an unsolvable problem in the market.
Compared with previous bull markets, this round of bull market is a bull market for Bitcoin, but not a bull market for the crypto market. Bitcoin has been rising all the way, and diamond hands have been rewarded, but some are happy and some are sad, and Ethereum holders are complaining.On December 17 last year, Bitcoin broke through the $100,000 mark for the first time, and ETH reached the peak of this round at $4,100. Since then, Bitcoin has hit $100,000 many times, but ETH is on the decline. In 7 breakthroughs, ETH fell back from $4,100 to $1,900, and in the tariff farce on April 6, ETH was smashed and hit a low of $1,385 for a short time.
In terms of content, the important contents of the upgrade are the execution layer hard fork and Electra consensus layer upgrade, covering 11 Ethereum Improvement Proposals (EIPs), such as EIP-3074 and EIP-7702 introduced account abstraction, EIP-7251 increased the maximum collateral amount of validators from 32 Ethereum to 2048 Ethereum, EIP-7691 adjusted the number of blobs and pricing mechanism, etc. Specifically, Pectra has made major updates to the core user experience by implementing smart accounts and delegation functions; upgraded the staking function to make it easier for institutions and individual investors to ensure network security; and greatly improved the integration with the second layer network (L2), doubling the network efficiency. Overall, this upgrade focuses on practicality and security, reflecting the migration of Ethereum from computing infrastructure attributes to financial infrastructure attributes, which will still have a far-reaching impact on the subsequent development of Ethereum.
Affected by this, the global financial market began to rebound. The Dow Jones Industrial Average rose 254.48 points from the previous trading day, closing at 41368.45 points, an increase of 0.62%; the Nasdaq Composite Index rose 189.98 points to close at 17928.14 points, an increase of 1.07%. The crypto market reacted quickly, and the follow-up effect was prominent. Bitcoin broke away from the shock zone and returned to $100,000. ETH rose by more than 20% in a single day. XRP, BNB, and Solana also had good gains.
Against this background, some industry insiders have also proposed that Ethereum is a big show of muscle after the "change of dealers", making latecomers pay for the new narrative. For example, X user @Murphychen888 analyzed the Herfindahl Index and pointed out that after December 24, the concentration of ETH chips has been rising rapidly. However, some people believe that compared with the 3.45 million ETH held by institutions in ETFs, the total amount of POS pledged exceeds 31 million, accounting for 28.3% of the total ETH. The rash change of dealers to pull the market has caused more than one million ETH holders to leave the market, which is quite a loss. It is worth noting that although the rise is gratifying, even to the extent that the market is confused, it is far from the level of FOMO in terms of the ecology itself. From the price point of view, ETH is only 2,500 US dollars, and its price performance in the cycle can only be described as unsatisfactory, and the ETH/BTC exchange rate is currently reported at 0.02423, which is undoubtedly a historical low. Even from the perspective of ecology, except for the strong blue chips, other currencies have very limited follow-up growth. Most of the cottage industries are still more than 70%-80% away from their previous highs, and new projects are even less popular. It can be seen that perhaps due to the previous heavy setback, the market seems to be in a wait-and-see and hesitant state. <span yes'; font-size:10.5000pt;mso-font-kerning:1.0000pt;">
Overall, although it has not yet reached its heyday, at a time when the macro market is gradually improving, combined with the current leaf="">ETH only has a 9.26% market share, and the price of ETH is indeed relatively undervalued, but whether the short-term sprint can ignite the next round of market charge is still worth discussing, especially in the current unpredictable market, where people are afraid of missing out and being trapped, and the difficulty of operation is increasing. But in any case, the strong rise of Ethereum has finally brought the market's attention back to this long-silent copycat leader, which may be more important for Ethereum now.
Weiliang
