Ethereum (ETH) Rallies above $120 to Displace Ripple’s XRP
Staged over the weekend, the rally shows ETH may be ready to re-awaken while Bitcoin remains slow.
Ethereum (ETH) stirred up over the past few days, rallying to above $124 over the weekend. As of 6:45 UTC on Monday, it traded at around $120.83. The price movement allowed ETH to displace XRP from the number two position on CoinMarketCap despite Ripple’s token recovering to above $0.30.
ETH may have received a slight push from Bitcoin (BTC), whose price rose to $3,655 on Monday. Tether (USDT) also provided a boost, accounting for 46% of trading. ETH remains one of the most active digital assets, serving as an intermediary between BTC and other tokens or altcoins.
One of the reasons for the price spike may be an outflow from BTC, with the potential of funds flowing into altcoins paired with ETH. Coinlib data show that a large portion of the ETH inflows ends up on the EOS markets.
This observation is supported by the fact that EOS is also on the rise, going as high as $2.84 over the weekend. ETH inflows also boost ZCash (ZEC), which is also on the rise, reaching $50.11 on volatile trading.
The ETH rally may, therefore, lift some of the leading altcoins, with a small-scale rally for many assets starting in the new week. ETH has a share of more than 15% of all trades, higher than the usual levels of around 9% to 12%, pointing to a trend of renewed activity in the altcoin markets.
At the same time, Ethereum mining has slowed down from around 188,000 GH/s to 130,000 GH/s in the past month alone. As the Constantinople hard fork approaches with a lowered block reward, miners may be moving away from the coin. ETH transactions have also fallen, sliding from above 716,00 a day last summer to 381,000 in February. One of the reasons for the weaker activity is the slowdown in initial coin offerings, as well as the relatively low usage of distributed apps (dApps).
Rival networks like EOS and TRON (TRX) show increased usage for their dApps, seeing ETH lose its leading position as a platform for distributed computing.