Ethereum Institutional Demand Rises, Will ETH Put BTC Out of Crypto Spotlight?

Post the successful implementation of the Shanghai upgrade, Ethereum (ETH) has delivered a strong move. The ETH price has surged past $2,100 levels gaining more than 10% over the last 24 hours. Ethereum has been posing strong competition to Bitcoin (BTC) which has grabbed all the limelight so far in 2023.

By gaining more than 14% on the weekly chart, Ethereum has outstripped Bitcoin which has gained 10% during the same period. It is clear that ETH is trying to close the gap with BTC which is already up by more than 80% since the start of the year. On the other hand, ETH has gained close to 77% now since the beginning of the year.

The implementation of the Shapella (Shanghai + Capella) upgrade has allowed ETH investors to withdraw their staked coins. Many have argued that it could lead to selling pressure on ETH, however, the case has been completely opposite in the 36 hours since the launch of the Shanghai hardfork.

Crypto fund manager Digital Asset Capital Management wrote: The impact of allowing the withdrawal of staking rewards and initial capital “is yet to be seen”, adding it “will be watching both withdrawal and selling data closely on-chain to see if there is resulting sell-pressure.”

Institutional Demand for Ethereum

As the Ethereum blockchain continues to make progress, the demand for its native ETH cryptocurrency continues to grow. Speaking to Bloomberg, Annabelle Huang, managing partner at crypto lender Amber Group, said:

“We’re already seeing more institutional demand when it comes to Ethereum now that they can stake, unstake, more instant liquidity”.

Crypto analysts currently remain divided over whether Etheruem (ETH) can continue its current price rally in the market. On the other hand, the macro factors will continue to have an influence on the crypto space.“Personally, I don’t think we are out of the woods yet,” Amber’s Huang said.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.