Market Wrap: Ethereum Killers Pop as ING Report Highlights Ethereum Over Bitcoin

Friday 07 May 2021, 7:32 AM AEST - 1 month ago

The tokens of the Ethereum blockchains competitors are making huge gains Thursday, while ether set a new price record above $3,600.

Bitcoin has less than 10% of golds market capitalization but could continue to differentiate itself from the yellow metal and grow its piece of the total market-cap pie.

Big-time gainers Thursday included tokens associated with blockchain projects that aim to replicate some of the key attributes of Ethereum, mainly programmability.

In the past month, ethereum classic (ETC) has gained over 1,250%, while cardano (ADA) has jumped 238% and eos (EOS) is up 42%, according to Kraken spot data provided by charting software TradingView.

The gains come as the giant Dutch bank ING used a recent report to throw some support behind the notion of programmable money used for decentralized finance, or DeFi.

The recent bull run of ETH has shed some light on competing projects to the Ethereum value proposition, which can be bundled into a category that we can call a sector, said Elie Le Rest, partner at trading firm ExoAlpha. The crypto market tends to work on comparable principles, meaning that if a coin of a sector has been doing great, such as ETH in the layer 1 sector, then other coins of this same sector may follow a similar trend.

Performance of ETC (green), EOS (Black) and ADA (Blue) the past month.

Layer 1 refers to blockchains that can serve as the foundation for various programming languages to create applications, known as smart contracts, that perform financial functions. Ethereum is a layer 1 smart-contract blockchain; ETC, ADA, and EOS are similar.

A Wall Street Journal article published Thursday highlights that retail investors are searching for value coins. Ethereum classic may no longer fit that bill, currently priced around $130, according to CoinDesk 20 data, but cardano priced at around $1.63 and eos at a little over $12 certainly do.

Interest has flowed out of bitcoin and into [altcoins] for the time being. People ...

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