Opinion: Ethereum still has room to grow

Trading volumes for Ethereum on spot and futures markets are rising faster than those for Bitcoin. That is a positive signal for the second-largest cryptocurrency, according to The Block researcher Larry Chermak.

“Against the hype surrounding various DeFi protocols, the ETH/BTC price ratio has risen 112% since September 2019—from 0.0162 BTC to 0.0343 BTC. However, ETH/BTC is still 78% below its historical high around 0.155 BTC, reached in June 2017,” the expert stated.

According to Chermak, analysts should note the ETH/BTC trading-volume ratio on major centralised exchanges, where volumes are close to actual trading activity.

“When the ETH/BTC trading-volume ratio grows, it indicates that traders are trading Ethereum more than Bitcoin,” the expert explained.

As with the spot market, futures volumes are roughly at March levels.

“Rising spot and futures volumes for Ethereum are a promising trend. And although Ethereum’s market capitalization is still five times smaller than Bitcoin’s, its spot volumes are only half as high, and its futures volumes are three times lower. This may indicate that ETH has room to grow against BTC,” concluded Chermak.

Since Ethereum’s inception, the network has processed transactions worth $1 trillion.

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