Ethereum Rally Picks Up Steam, But Still Lags Behind Other Cryptos
• Cryptocurrencies have had a positive start to 2023, with Bitcoin leading the way.
• Ethereum has lagged behind the other leading cryptocurrencies, losing over 70% of its value in 2022.
• The recent rally has reduced Ethereum’s losses compared to the other leading cryptocurrencies, but it still has more room to rally.
The cryptocurrency market started 2023 with positive momentum. After the market crash of 2022, Bitcoin, Doge, Ripple, and Ethereum all gained against the US dollar. Bitcoin was the clear leader, bouncing back strongly from its lows and creating an almost direct correlation between it and the rest of the cryptocurrencies. However, something interesting happened since then: the correlation between Bitcoin and the other cryptocurrencies weakened.
Ethereum, in particular, has lagged behind the other leading cryptocurrencies. It lost over 70% of its value in 2022, the most of all the leading cryptocurrencies, before the recent rally. The rally has reduced Ethereum’s losses against the US dollar, but it still has more room to rally compared to Bitcoin, Doge, and Ripple. These three cryptocurrencies have moved more or less in sync with each other, while Ethereum has lagged behind.
The reasons for Ethereum’s lagging behind are still unclear, though it is believed that the lack of developer activity around Ethereum could be to blame. The recent rally has also created a lot of optimism around the cryptocurrency, but it remains to be seen if Ethereum can continue its rally or if it will continue to lag behind the other leading cryptocurrencies.
In any case, the recent rally has been a welcome change for cryptocurrency investors, and it will be interesting to see how the market develops in the coming months. Ethereum may still have more room to rally, but it remains to be seen if it can catch up with the other leading cryptocurrencies.
