There is growing data to suggest that the coming few months and years could see Ether truly deliver on its ‘flippening’ promise.
The narrative surrounding Ether (ETH) of it fast transforming into an independent asset has been around for some time now. However, the last few months have seen this notion gain an increasing amount of mainstream traction, as is best highlighted by the fact that, since Oct. 1, ETH has showcased substantial northbound movement against Bitcoin (BTC).
To put things into perspective, toward the beginning of November, the one-month realized correlation between the BTC/ETH pair dipped as low as 60%, its lowest ever in the currency’s decade-old history. Furthermore, since the start of the year, while Bitcoin registered gains of 105%, Ether went up by a whopping 505%, thus outperforming the flagship crypto by nearly five times.
Ether gaining an upper hand is perhaps best reflected in that, over the course of the last couple of months, the ETH/BTC pair has continued to trend north, despite there being a major market dip across the board since the start of December. In this regard, even when the value of BTC fell back below $50K, the ETH/BTC pair price continued to accrue value, quickly rising by around 13%, thus hitting a three-year high.
Speaking with Binance’s research wing, a spokesperson for the cryptocurrency exchange told Cointelegraph that the above stated activity — wherein ETH has been able to muster a lot of independent market support against Bitcoin — has been quite unusual considering that the ETH/BTC pair tends to only rally during bull runs, adding: “This is not to say that ETH has already decoupled from BTC, but it provides a clear-cut glimpse that not all alts are correlated to BTC movements.” The spokesperson further elaborated:
It’s important to acknowledge that ETH may no longer be considered as an alt, but it’s a token with its unique characteristics. The key drivers for the recent rise can be attributed to the growing Metaverse, GameFi, and NFT narratives, which are all largely built on the ETH network.”