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Is Ethereum going to continue being the Silver to Bitcoin’s gold

Is Ethereum going to continue being the Silver to Bitcoin’s gold

Is Ethereum going to continue being the Silver to Bitcoin’s gold

The cryptocurrency market appears to be on the upswing, largely due to Bitcoin’s return to previous levels. ETH, which has been slightly mimicking the performance of Bitcoin, the world’s second largest cryptocurrency and number one altcoin since late September, hits $3,800 today. Experts believe that the Ethereum network is poised for exponential growth. Given the increase in Ethereum use cases and the demand for Ethereum-based products, this seems plausible. Recent months have seen an increase in layer 2 protocols, which has brought with it greater demand for Ethereum block storage.

Frank Holmes, CEO and CIO of US Global Investors and Executive Chairman of HIVE Blockchain offered his opinion on Ethereum. It shows the relationship between the prices of BTC and ETH and compares them to those of gold and silver.

When gold goes to a 50-day moving average, and it goes up 15-20 percent, silver all of a sudden surges 30 percent. Ethereum is to Bitcoin — is like silver is to gold. Bitcoin makes the big charge, then all of a sudden Ethereum explodes to the upside. That’s the sweet spot for us […] It is a smart contract — Ethereum has many more uses than Bitcoin does, the same way silver does — 20 percent of demand for silver is for solar energy. It has a green footprint, viruses can’t live on silver, it has many medical uses, etc., The same thing with Ethereum, it is used for DeFi, for NFT’S. It’s a much more important backbone for growth in blockchain.

The overall sentiment around Bitcoin is that it is poised for a major bull run by the end of the year. In fact, Crypto-Twitter is already calling it “Uptober” this month. If this relationship between the two major coins goes any way, then ETH is also poised for a major breakthrough. Another reason to think ETH is about to explode is renewed interest in decentralized finance (DeFi) and non-fungible tokens. A large part of DeFi and NFT products and services are based on the Ethereum network.

Unlike the Bitcoin network, which has seen a sharp drop in activity, the Etherum network has seen a sharp surge in activity. The link between the price of Ethereum and the rise in usage and applications such as NFTs, DeFi platform decentralized applications (dApps) and smart contracts is undeniable. Ultimately, the rationale of “supply and demand” could be the final and determining factor in ETH prices. Ethereum is ready to move from proof-of-work protocol to next year proof protocol.

This means that miners are no longer energy-intensive to mine. Staking is used to ensure the security of the blockchain. Many believe that this will increase the value of ETH. They believe that the idea of ​​constant returns guaranteed by staking and a relatively quick payback period will keep the altcoin going and this will lead to high demand.

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