The CEO of Chainalysis recently revered Ethereum as a store of value in bearish seasons. Michael Gronager admitted that investors are now turning to Ether over Bitcoin in a video dialogue on Tuesday.
The entrepreneur mentioned that while all crypto assets are risky, investors usually turn to Bitcoin in times of extreme bearishness in the past. However, the charts reveal that investors are embracing Ethereum over Bitcoin in recent times.
Bitcoin vs. Ethereum
Michael backed his claims of Ethereum’s strength with an ETH/BTC chart. The current value of ETH against BTC is 0.069. Although this value is below the range it traded for in the past few weeks, the overall chart is an uptrend. This implies that investors are more bullish on Ethereum than Bitcoin at the moment.
Although both coins are well below their all-time highs, crypto investors find these two assets safer than other coins. The high market cap of Bitcoin and Ethereum makes them slightly less volatile than lower cap tokens.
A few days ago, a lower cap token (LUNA) lost 99% of its value within 24 hours. This massive dump has increased the fear in the minds of investors. Ethereum, on the other hand, like Bitcoin, has a slimmer chance of losing so much of its value.
Admittedly though, like other crypto assets, the price of Ethereum has been dependent on the price of Bitcoin in the last few months. A dump follows every Bitcoin dump in Ethereum and other tokens.
But Ethereum has also gained more value when recovering from market dips, making it a better store of value. In the last 24 hours, Ethereum has gained over 6% after the intense value reduction suffered by the token. Bitcoin has regained over 3% of its value, which is less when compared with Ethereum.
Perhaps, the upcoming ETH upgrade expected to be completed later this year or next will lead to a breakout in the price of Ethereum, making the asset gain much more value relative to Bitcoin.