According to a report from crypto analytics firm IntoTheBlock, Ethereum has recorded an 85% increase in its market capitalization over the past year, from approximately $149.18 billion to its current value of $275.98 billion. However, compared to other major assets, ETH’s performance still leaves more to be desired, especially given the many positive developments the asset has seen in 2023.
Ethereum is underperforming
Ethereum (ETH) was one of the major headliners in the crypto space in 2023. The second largest cryptocurrency and the most prominent altcoin continued to maintain investor interest, which was characterized by several factors.
One of these factors is the Shanghai/Capella upgrade in April, which has led to a significant increase in ETH stakes activity so far, as investors are now allowed to freely withdraw their assets from the Ethereum network.
Ethereum grew ~85% in market cap in 2023, slightly underperforming other major assets, despite upgrades, ETF applications, and robust adoption metrics. pic.twitter.com/cdvV085cxz
— IntoTheBlock (@intotheblock) December 23, 2023
Furthermore, Ethereum has also recorded a surge in institutional adoption amid the launch of Ether Futures ETF in the US and growing competition among various asset managers to gain approval for the first-ever spot Ether ETF. Nevertheless, these developments could only increase altcoin market shares by 85%, which while impressive, is overshadowed by the performance of other cryptocurrencies.
For context, Bitcoin, the market leader, posted a 163% increase in market cap value, while other top coins, such as ADA and AVAX, also posted gains of 145% and 341% respectively.
The trending meme token Bonk (BONK) delivered the largest market cap increase of 1,574%, followed by Optimism (OP) with 916% and Solana (SOL) with 744%. Other notable mentions include Celestia (TIA) and Chainlink (LINK), at 459% and 199% respectively.
ETH price prediction
At the time of writing, Ethereum is trading around $2,292.13 with a gain of 0.04% on the last day. Looking at the token’s daily chart, ETH is currently heading towards the $2,400 resistance zone, which has proven effective in recent weeks.
Interesting enough, price prediction site Coincodex reports that investor sentiment around Ethereum is strongly bullish, with a Fear & Greed Index of 71. This indicates that many investors currently view altcoin as a favorable investment.
However, if the $2400 resistance zone remains strong again, ETH could experience a price decline and find support around the $2120 price region. And in the presence of overwhelming selling pressure, Ethereum could fall to $1,921.
Ethereum (ETH) trading at $2,294.60 on the daily chart | Source: ETHUSDT chart on Tradingview.com
Featured image of Money/Fortmatoriginal, chart from Tradingview
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