Ethereum has received a lot of attention since the announcement of its backward-incompatible ‘London’ update and the attention didn’t fade as Ethereum rose by a 5% in 24 hours soon after the launch. Bitcoin rose by 3%.
However, even with the update, many analysts believe that widespread adoption of Ethereum might still take a few years. Bitcoin saw a bullish rally over the past year due to many institutional investors aggressively investing in Bitcoin.
In an interview with WuBlockchain, Ki Young Ju, CEO of CryptoQuant said:
“I think Ethereum might flip the bitcoin market cap in the long term, but not this year. I met Goldman Sachs, Fidelity and other big institutional asset management firms in Miami a few weeks ago and they said they’re still struggling explaining what Ethereum/DeFi (decentralized finance) is to their bosses.”
Currently, several investors have involved themselves in the crypto market. Fidelity Investments recently acquired a 7.4% stake in crypto asset mining Marathon Digital Holdings. French asset manager Melanion Capital has received regulatory approval to launch an ETF targeting Bitcoin and other crypto-related stocks.
As seen, many large institutions have crept into the crypto-market with a Bitcoin-first approach and it might take some time before institutional investors accept altcoins like Ethereum and Cardano.
An hour after the update launched, Ether saw a steady price rally with the current value stands at $2774 ( 06 August 06:50 AM UTC).
With the new update, the supply of Ethereum has started burning with the implementation of the Ethereum Investment Proposal- 1559 (EIP-1559). The EIP-1559 has added a deflationary factor to Ethereum which previously had no supply cap. As of now, more than 3500 ETH have been burned since the launch of ‘London’.
Ether broke above the 100 day moving average for the first time since June, clearing a major analytical hurdle. Ether has now outperformed Bitcoin with the current initial resistance ETH/BTC ratio standing at 0.06.