ETH Outperforms BTC as the Market Attempts Recovery: Markets Wrap

key takeaways

The ETH-to-BTC ratio has been trending upwards as ETH gains momentum
ETH market structure implies bullish price action could be nearing

ETH continues to outperform BTC as the digital asset market recovers from last weekend’s sell-off.

ETH issuance continues to decline post-EIP-1559 implementation.

92% of all Ethereum addresses are in a state of profit.

Perpetual funding rates show relatively neutral sentiment among traders, except for Bitmex where traders are getting aggressive.

A look into the latest prices for top NFT collections.

Latest in Macro:

S&P 500: 4,701, +0.31%
NASDAQ: 15,786, +0.64%
Gold: $1,783, -0.04%
WTI Crude Oil: $72.65, +0.83%
10-Year Treasury: 1.528%, +0.048%

Latest in Crypto:

BTC: $50,174, -0.39%
ETH: $4,384, +2.42%
ETH/BTC: 0.0874, +2.63%
BTC.D: 40.56%, -1.42%

Ethereum

ETH continues to outperform BTC as the digital asset market recovers from last weekend’s sell-off. The ETH/BTC ratio has broken out of a multi-month range after firmly breaking out over the .08 level on Dec. 4. The trend has continued and is running toward levels not seen since early 2018.

Source: Trading View

Ethereum issuance has fallen since the implementation of EIP-1559 back in August. 1.147 million ETH has been burned over that period, leading to a net reduction of 68.35%, according to data from watchtheburn.com.

Source: watchtheburn.com

61.52 million addresses holding ETH, or 92% of all addresses, are in a state of profit according to data from intotheblock.com.

Source: Intotheblock.com

Perpetual funding rates for ETH hold a slightly positive bias across all exchanges, except for Bitmex where traders are getting a bit aggressive according to data from laevitas.ch. The higher the funding rate, the more expensive it is for longs to keep positions open.

Source: Laevitas.ch

A Genesis report noted some layer-2 developments over the month of November include:

Metis, an Optimism fork that allows data to be stored on IPFS, launched a $100 million ecosystem fund at the beginning of the month22.
And StarkWare, which relies on a different layer-2 technology (ZK rollups), raised $50 million at a $2 billion valuation23 to accelerate expansion of the network.