With a 3,7% loss in the last week and 2.7% in the last hour, Bitcoin’s price sits near critical support. On the other hand, Ethereum managed to climb to a new all-time high and sits on top of two fast-growing sectors: DeFi and NFTs.
Former Goldman Sachs Executive Raoul Pal has shown data to demonstrate that throughout its history, Ethereum has outperformed Bitcoin by 250% in the trading pair ETH/BTC. According to Pal, the cryptocurrency “only fell” against BTC 5 months after its inception on August 6th, 2015. He added:
Let that put rest to the idea that all other tokens trend towards zero in BTC terms.
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Source: Coingecko Ethereum’s network effect impacts its price
According to Pal, the only tokens that trend down when compared to Bitcoin are those unable to “get network effect”. Former Goldman Sachs executive claimed:
Tokens that fail to get network effects trend lower, tokens that achieve ecosystem network effects (active wallets + developers