Ethereum (ETH), the world’s second-largest cryptocurrency, is once again outperforming its main rival Bitcoin. As of press time, the price of ETH had risen 6%, breaking over key resistance at $3,000 levels.
Even Bitcoin (BTC) has seen a 3.5 percent increase in price, passing $42,200. On a weekly basis, Ethereum is up about 20%, which is more than twice as much as Bitcon’s gains of 9%. Clearly, ETH has been the show-stopper over BTC.
The latest price increase in Ethereum (ETH) is taking place against the backdrop of a strong fundamental buildup. Exchanges have seen massive ETH outflows over the previous week.
Nearly 200K ETH was removed from centralized exchanges in a single day as a result of these withdrawals.
Also, after a brief respite, the number of Ethereum whale transactions has increased dramatically. Furthermore, the number of transactions for $100K or more on the Ethereum network has been increasing.
Ethereum “execution” layer and the “consensus” layer
With several important advances recently, the Merge between the Ethereum “execution” layer and the “consensus” layer has been the object of most discussion. On the Kiln testnet, the Merge was recently successful.
The introduction of Ethereum 2.0 is the most anticipated event in the cryptocurrency world.
By switching to the Proof-of-Stake (PoS) ecosystem, the Ethereum network will use 99.5 percent less energy, making it more ecologically friendly.
Furthermore, it will significantly increase Ethereum network scalability for DeFi apps while also lowering transaction costs.
Another major driver of the ETH price is the fact that $6 billion worth of ETH has been burned since the adoption of EIP-1559 last August.
A startling 2 million ETH have been removed from circulation, putting the network under deflationary pressure.