Let ETH go
4 min read

Let ETH go

B21 Crypto. We help you stomach cryptoassets.

Cryptic ball: resist the FOMO.

Another Thursday, another $90M crypto hack. Yet, the market didn't flinch, with bitcoin and ether recovering from Wednesday's dip, as suggested in the previous newsletter. More interestingly, today BTC has even conquered new highs unseen since last May! This makes us feel like the original blockchain will test $51k this Sunday - and ether may follow to $3.5k if BTC doesn't get a strong rejection.

Solana has also consolidated since Wednesday and is now attempting another leg up. But, as explained in the beginning of the week, SOL now has to fight for the attention of alt traders with other large caps which are catching up. Do you recall Monday's tip about Cardano's ADA being the next one to pull of a new all-time high? Well, it has just dethroned Binance's BNB as the third largest token around!

Chart art: but pick your winners.

The real flippening will be when another dApp's platform dethrones Ethereum.

Market musings: remember 2017.

An interesting pattern of the current bull market compared to that of 2017 is that bitcoin and ether are more correlated than ever, as you can see below (except for the crypto winter where nothing really moved). In other words, before it was typical for ETH (and alts) to crash when BTC was pumping. Conversely, ETH and alts would only pump when BTC was stable. And everything crashed in tandem.

These days, the only relationship that still holds is that gravity impacts all cryptoassets that aren't stablecoins. This makes picking winners and rotating in and out of bitcoin more difficult than before. Still, it's all about following bitcoin's dominance against all other tokens. We talked a lot about it in April but it's time to resume the conversation, as now dominance is falling even though bitcoin is rising.

That means everything is pumping, which overshadows the original cryptoasset. So, from now onwards, we'll also be following Ethereum's dominance against other smart contract platforms, as illustrated above. For now, it seems most in Crypto Twitter believe it's good for ether's price that Ethereum has competition. But let's keep following the roll-out of Ethereum 2.0 to see if the confidence survives!

Visual block: but understand the differences.

The two leading cryptoassets are more and more correlated as they both mature. But what are the correlations between ETH and all its competitors?

Three things: focus on learning.

  • Curious about Solana and SOL? Learn about the popular Ethereum killer with Kyle Samani, one of the project's early investors. Biased, but good.
  • Curious about the intrinsic value of NFTs? Learn about "the future of flex" with Arthur Hayes, our favourite writer in this space. Cheeky, but great.
  • Curious about Polygon and MATIC? Learn about this scaling solution built on Ethereum to help lower dApp's with The Tie. Just informative, but essential.

Tweet tip: but don't take a jab at video games.

All those years playing The Sims will finally be worth it.

Meme moment: enjoy the weekend.

What will the S&P 500 do after this?

Dogecoin is coming: and feel much wow.

Prepare for a doge-full weekend with B21.

Get started: download the B21 Crypto app!

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Legal Notice
Our newsletter offers opinions and insights from analysts in the cryptoasset space. It is not intended to be investment advice, and should not be treated as such. You must not rely on its information as an alternative to financial advice from a qualified professional. Without prejudice, we do not undertake or guarantee that its information is correct, complete or non-misleading; or that the use of guidance in the report will lead to any particular outcome or result.