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According to a report According to crypto analytics firm IntoTheBlock, Ethereum saw an 85% increase in its market capitalization over the last year, from around $149.18 billion to its current value of $275.98 billion. . However, when compared to other major assets, ETH’s performance leaves even more to be desired, especially considering the many positive developments the asset has seen in 2023.
Ethereum underperforms
Ethereum (ETH) has been one of the main headliners in the crypto space in 2023. The second-largest cryptocurrency and largest altcoin has continued to hold investor interest due to several factors.
One such factor is the Shanghai/Capella upgrade in April, which has so far led to a significant increase in ETH staking activity as investors are now allowed to freely withdraw their assets from the Ethereum network.
Ethereum’s market cap grew by approximately 85% in 2023, slightly underperforming other major assets despite upgrades, ETF applications and showing robust adoption metrics. pic.twitter.com/cdvV085cxz
– Intotheblock (@intotheblock) December 23, 2023
Additionally, Ethereum also saw an increase in institutional adoption amid the launch of the Ether Futures ETF in the United States and growing competition among several asset managers to gain approval for the first-ever ETF Spot Ether. Nonetheless, these developments could only increase the altcoin’s market shares by 85%, which, while impressive, is dwarfed by the performance of other cryptocurrencies.
To recall, market leader Bitcoin recorded a 163% gain in market capitalization value, while other leading cryptocurrencies such as ADA and AVAX also recorded gains of 145% and 341%. , respectively.
Trending meme token Bonk (BONK) produced the largest market cap increase of 1,574%, followed by Optimism (OP) with 916% and Solana (SOL) with 744%. Other notable mentions include Celestia (TIA) and Chainlink (LINK), with 459% and 199%, respectively.
ETH Price Prediction
At the time of writing, Ethereum is trading around $2,292.13 with a gain of 0.04% in the last day. Looking at the daily chart of the token, ETH is currently heading towards the $2,400 resistance zone, which has proven to be effective in recent weeks.
Interesting way, Coincodex price prediction site reports that investor sentiment around Ethereum is strongly bullish, with a Fear and Greed Index of 71. This indicates that many investors currently view the altcoin as a favorable investment.
However, if the $2,400 resistance zone remains strong, ETH could see a price decline and find support around the $2,120 price region. And in the presence of overwhelming selling pressure, Ethereum could fall as low as $1,921.
Ethereum (ETH) trading at $2,294.60 on the daily chart | Source: ETHUSDT chart on Tradingview.com
Featured image from Money/Formatoriginal, chart from Tradingview
Disclaimer: The article is provided for educational purposes only. It does not represent the views of NewsBTC on whether to buy, sell or hold investments and, naturally, investing involves risks. You are advised to carry out your own research before making any investment decision. Use the information provided on this website entirely at your own risk.
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