by Vincent Muthee
Ethereum (ETH) seems to be back on track as the “digital oil” reclaims $3,800 yet again despite being struck by macroeconomic headwinds in early August. On the day, ETH is up by over 7.37% to $3,850, as per data by CoinMarketCap. This surge signals a resurgence in investor confidence.
The coin is also edging over Bitcoin following the recent crash. Current data shows that the ETH/BTC ratio is surging suggesting that Ethereum is increasing in strength relative to Bitcoin. But what’s next for ETH? Dom Harz, Co-Founder of BOB (the Gateway to Bitcoin DeFi), offers insight.
Ethereum Rallies Backed by Institutional Appetite
While Ethereum is only up by less than 1% on the weekly chart, the recent price performance has painted a rosy picture for the largest altcoin. Behind this performance, lies increasing retail and institutional appetite, according to Dom Harz.
“ETH’s price rise this week signals renewed interest from both retail and institutional investors. It’s estimated that over $6.3B in ETH is now held in corporate treasuries, a clear sign that Ethereum is no longer flying under the radar. While Bitcoin has dominated headlines in recent months, Ethereum has been steadily building in the background,” Dom remarked.
According to an analysis by DropsTab, a crypto market analytics platform, Ethereum treasuries now hold a total of $7.59 billion worth in ETH reserves. However, these treasuries collectively target to hold more Ethereum totaling to $30.4 billion. This level means over 4 times the current holdings, leaving a demand gap of approximately $23 billion in Ethereum acquisitions on the table.
“Top Nasdaq-listed companies plan to accumulate over 300% more $ETH than they currently hold — targeting a total of ~$30.4B,” DropsTab wrote.
While this number looks huge, the trend behind the acquisition is already in motion. Bitmine (BMNR), leads the wave with a total of $22 in ETH acquisition target. SharpLink Gaming follows with a target of $3.6 billion in ETH purchases. As per a recent development, the firm has announced the raise of $200 million for more ETH purchases.
BTCS Inc, The Ether Machine, Bit Digital and GameSquare are also ramping up on more ETH purchases. These firms have set ETH holdings target at $2 billion, $1.6 billion, $1 billion and $250 million, respectively.
ETH/BTC Ratio Surges
In tandem with the rising price of Ethereum, the ETH/BTC ratio is also surging. According to data by Trading, the ratio between the two pairs now sits at 0.03294, following a rebound from below 0.03200 level two days ago.
Crypto analyst, Titan of Crypto, has termed this rise in the ETH/BTC ratio as ‘very bullish’. In his recent post on X, he wrote; “ETHBTC market structure looks very bullish. Next move could surprise many.”
This rise in the ETH/BTC ratio sparks hope for an altcoin season. However, the other metric to measure Ethereum’s performance relative to Bitcoin is the Bitcoin Dominance (BTC.D).
In his analysis, Crypto analyst ‘Merlijn The Trader’ recently highlighted that the BTC.D is dipping. This signals a sign of weakness in Bitcoin’s dominance, with liquidity shifting to altcoins – including ETH. Today, BTC.D sits at 61.44 as per data by TradingView. The current level shows a drop from over 62, confirming Merlijn The Trader’s call for a drop in Bitcoin’s dominance.
ETH Sits in a Sweet Spot, But What’s Next?
Following the rather impressive performance by ETH over the last few days, Dom Harz has echoed the altcoin, claiming that it is in a sweet spot at the moment. However, he also noted that the market has often overlooked Ethereum’s strong developer backing and DeFi capabilities.
“ETH sits in a sweet spot: more accessible than Bitcoin, but more credible than many altcoins. Yet what’s often overlooked is what truly underpins Ethereum: its world-class developer community and its deep, battle-tested DeFi ecosystem,” Dom noted.
Moving forward, Dom Harz believes that Bitcoin DeFi could unlock Ethereum’s potential even more. He noted that merging Bitcoin’s capital and Ethereum’s programmability could open the door for new opportunities not only for institutions but also retail investors.
#blockchain #crypto, #decentralized, #distributed, #ledger
