Key takeaways:
- Ethereum’s dominance in the DeFi, stablecoin and staking markets shows that ether is a good but long-term investment.
- However, the ether price continues to fall.
Ethereum is an important investment
Cryptocurrency analyst Tanaka commented on these data in an interview with Cointelegraph: :
I believe these elements will continue to dominate the market in the medium and long term. And if we look at the current data, Ethereum still remains the most important settlement layer for these narratives.
The good news doesn’t end there. Ethereum staking activity is also steadily growing. Network data shows that ETH staking has reached nearly 39.1 million ETH, or approximately 32% of the total ether supply, spread across over 896,000 active validators.
On top of this, there are over 3.47 million ETH waiting in the queue to enter staking pools, which means that the waiting time for entry is already over 60 days. The “output supply” remains at a minimum level of… 0.
CryptoQuant data also highlights the ether accumulation trend. The inflow of ETH to accumulation addresses reached as much as 248,400 ETH (it happened on May 20), which means the strongest inflow in one day since January 6. These portfolios are often associated with long-term holders.
Will Ether overtake Bitcoin?
The so-called topic flipping, i.e. bitcoin being overtaken by ether in terms of capitalization, returns like a boomerang in every cycle. Really? This scenario still seems unlikely. BTC has too strong a position, liquidity and safe haven status
– begins the expert.
However, ETH may provide a higher rate of return in the near future, especially if we enter a strong altseason. They are driven by the development of DeFi, asset tokenization and smart contracts. Interestingly, Ethereum may also be the main beneficiary of the CLARITY Act, because the new act is intended to strongly reward projects with a high level of decentralization and transparency.
– he added.
In his opinion, bitcoin “will retain its status as a defensive, more stable foundation,” but Ethereum “offers greater growth dynamics, but at the cost of higher risk and volatility.”
The ether price continues to fall
However, Ethereum’s strength is not visible on the chart. Currently, 1 ETH on exchanges costs only USD 2,064, which means that the price has fallen by 7% in a week. On a monthly basis, we are already talking about a 13% correction. Over the course of a year, ether lost 32% of its value.
