Ethereum surpasses Bitcoin in growth. Inflows from ETFs contribute to Ethereum's rally, as pointed out by MEXC.
Updated Analysis: Ethereum leading Bitcoin ETF flows post-Pectra upgrade, hinting at an oncoming altcoin boom, according to Tracy Jin of MEXC
Ethereum is seizing control as the seasoned rockstar in the crypto realm, steering the way for capital influx towards altcoins, as per MEXC's COO Tracy Jin’s latest insights. Last Tuesday, June 3, Jin dropped her analysis on our site, revealing compelling reasons for an impending altcoin revolution.
Jin pinpoints Ethereum's commendable post-Pectra upgrade performance as a noteworthy indicator of this shift. "Ethereum is clearly driving the shift towards altcoins in this evolving market climate, and other coins like Monero, Enjin Coin, Hype, Aave, and Arbitrum are following suit, posting gains well beyond Bitcoin's meager 0.6% increase during the recovery rally on Tuesday," Tracy Jin from MEXC shares.
The case against an altcoin season just yet, claims analysts
Although the altcoin stage is setting, it's still premature, suggests Jin. At present, only a mere 27 out of the top 100 altcoins have outperformed Bitcoin over the past 90 days. Bitcoin's dominance remains robust at 63.1%. However, Ethereum has shown small, yet noticeable gains during May, with its dominance climbing by 2%.
"Recent altcoin performance is promising, but history implies that a full-blown altcoin season doesn't typically materialize until Bitcoin's dominance starts to wane more significantly," Tracy Jin, MEXC reiterates. For an unbridled altcoin season to flourish, Bitcoin's dominance needs to take a deeper dive, Jordan claims, which could likely happen as Bitcoin finds stability at the psychologically crucial level of $100,000. In such a scenario, Ethereum could soar past its current resistance of $2,750 and advance towards $3,200.
Ethereum's Pectra upgrade: A transformative leap, reveals P2P.org
Jin also highlights mounting concerns about potential exploits in the Pectra upgrade, which raises questions about its long-term impact on Ethereum's trajectory. Nevertheless, analysts remain optimistic about the upgrade’s benefits, as its improvements in staking infrastructure, wallet usability, and smart contract functionality could entice a wave of developers and users to the Ethereum ecosystem.
| Ethereum Post-Pectra Upgrade | Bitcoin ||-----------------------------|--------------------------|| 35%-100% price surge in April and early May[6][7] | Subdued gains[6] || 16% to 20% market share[6] | 63.1% market dominance || Pectra network upgrade boost[3][6] | Macro/ETF news-driven rally[6] || Accelerated transaction speed and scalability [3] | Steadfast security profile [8] |
While altcoin season fever is on the rise, Bitcoin's unyielding presence in the market suggests its foundational role remains unshaken for the time being. The ongoing coexistence of both giants indicates that although altcoin enthusiasm is blooming, Bitcoin's fundamental role remains firm.
- Tracy Jin, COO of MEXC, suggests that Ethereum's commendable performance post-Pectra upgrade could be a sign of an impending altcoin boom.
- Other coins like Monero, Enjin Coin, Hype, Aave, and Arbitrum have shown significant gains, following Ethereum's lead in this crypto market.
- Despite the promising altcoin performance, only 27 out of the top 100 altcoins have outperformed Bitcoin over the past 90 days, with Bitcoin's dominance at 63.1%.
- For a full-blown altcoin season to occur, Bitcoin's dominance needs to decline more significantly, as claimed by some analysts, which could happen when Bitcoin finds stability at the psychologically crucial level of $100,000.
- The Pectra upgrade for Ethereum reportedly brings improvements in staking infrastructure, wallet usability, and smart contract functionality, which could potentially attract more developers and users to the Ethereum ecosystem.
- Despite concerns about potential exploits in the Pectra upgrade, analysts remain optimistic about its long-term impact on Ethereum's trajectory and potential for a transformative leap in the crypto market.
