Ethereum News Update
“Ethereum’s not doing that badly,” is a phrase I hear often. It’s poor consolation, a pat on the back for being the least terrible asset in this crumbling class. But there’s a nugget of truth there.
For all its painful backsliding in January, last month was extremely important for Ethereum. It established the No. 2 cryptocurrency as a true “safe haven” asset, a crypto that investors flock to in times of trouble.
Just take a look at the BTC dominance metric.
The orange line shows Bitcoin’s share of the total market. It has declined significantly over the past three months, while Ethereum’s share has grown. This is not a coincidence.
Investors are growing skeptical of Bitcoin. They are weary of its grandiose promises and outrageous transaction fees. They want results.
Global elites are equally frustrated by Bitcoin, considering it an existential threat to the relative calm of ordinary financial markets. “Blockchain, not Bitcoin,” is their new mantra.
This creed serves to embolden decentralized apps, which are Ethereum’s bread and butter. It is effectively a signal from the power brokers of the world that if blockchain is indeed knocking on their door, they will admit only those that look and act like Ethereum. Bitcoin is not welcome.
Crypto-libertarians bathe in this condescension. They love the idea of conflict with the global elite, but that way lies failure. We’ve seen the cost of regulatory crackdowns in the last year, and it not an understatement to say the future of cryptocurrencies is in government hands.
As such, we are optimistic about Ethereum. It is palatable to both investors and bureaucrats, making it the ideal replacement for Bitcoin.
I’m obviously not the first person to make this connection. ETH bulls have been expecting this for some time. In fact, the moment of inversion has a nickname among ETH traders: “The Flippening.”