Apr 14, 2023 at 07:24The cryptocurrency market is soaring to new highs for Bitcoin and Ethereum, signaling the potential for even greater mass adoption. Learn more about the latest developments and why it’s not too late to invest in cryptocurrencies in the article below.
Ethereum captures markets
During the last 24 hours, the crypto market got a new growth impulse, resulting in new highs for today: BTC — $31k and ETH — 2.1k. Only yesterday we reported about Bitcoin’s dominance, and in one day the situation has radically changed.
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Bullish Ethereum:
- Open interest in the Ethereum futures market rose 30% per day and outpaced Bitcoin in both volume and dominance. ETH grew by 6% in 24 hours, which for an altcoin with such a large capitalization is a very rapid rise. It looks like the market has finally calmed down and accepted the safety of the Shapella update.
- Santiment reports: after the price dominance of BTC at the beginning of the week over many assets, today it is the turn of altcoins to lead; for example, Ethereum finally crossed the $2.1k mark for the first time in 9 months. Among the top 100 altcoins, #ARB, #APT, #HEX, and #RPL are now the biggest beneficiaries of the new rally.
- Even Bloomberg was quick to write about Ethereum’s coming revenge against BTC:
- Crypto-prophet Arthur Hayes tweeted today, “Let me introduce myself. My name is altcoin season” and attached a chart of the abnormally fast growing ETH.
Reasons for the new rally
- U.S. inflation slowed to 5%, and new CPI data was below expectations of 5.2%. This reinforced the belief that the Fed was nearing the end of its cycle of aggressive interest rate hikes.
- Growth triggers for the cryptocurrency were not only economic factors like the CPI and the weakening of the dollar (DXY), but also organically growing online activity. For example, 512,000 new addresses have joined the Bitcoin network in the last 3 weeks!
- The successful activation of the Shapella hard fork and the lack of a mass exodus of stakers has calmed Ethereum’s second-largest market.
- Twitter’s integration of cryptocurrency payments as part of its monetization strongly encourages mass adoption.
- Regulators, who were previously constantly attacking crypto, seem to have taken a pause — nothing negative has happened for more than a week, and many traders have breathed a sigh of relief. It looks like the crusade against crypto is over.
And again about mass adoption
Why is it not too late to invest in crypto? Why is it hard to believe we are in the early stages of Bitcoin adoption?
We’ve noted the previously increasing growth rate of new active Bitcoin addresses. But even that current rate of audience growth is roughly proportional to what the Internet had in 1994.
Crypto now has about 200 million online users, or about 2.5 percent of the world’s population. It is believed that the peak of technology development is at an adoption rate of 34% or more. The Internet, for example, now has an adoption rate of 78%.
That’s why Bitcoin is in the infancy of growth; these are the earliest stages of adoption. You will see the real price of BTC only in 3-5 years when the penetration rate reaches 34%. That’s why long-term investing right now in crypto is profitable and not too late.
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