Why ETH will outperform BTC this year

1. Fees/cashflow

Ethereum generates a lot of fees itself, as a platform, and supports a variety of decentralized yield/fee-generating products in its ecosystem.

2. High turnover

On average the fee of trading on DEXs is 15–35bps per transaction, not including the cost of going through Ethereum’s pipes which is another fee layer depending on congestion.

3. DEX volume

DEX volume has been exploding with the bubble becoming more mainstream. Breaching $55bn monthly turnover.

4. Decentralized Finance (DeFi)

Decentralized Finance (DeFi), under which these DEXs fall, has been adding active users in a rapid pace. From nothing to nearly 1.2mm unique addresses to this year.

5. DeFi AUM

DeFi AUM’s (assets under management) meteoric rise — from sub-1bn beginning of 2010 to now reaching over $30bn.

6. DeFi Lending Protocols

$14bn+ deposited into lending DeFi protocols. This process unlocks liquidity via a collateralized loan (conventionally, over-collateralized 3x for 7% APR) for long-term holders of ETH and tokens who don’t want to sell.

7. Ethereum’s hashrate

Ethereum’s own hashrate, an indicator of total amount of computing power put towards securing the system and unlocking new Ethereum inflation as reward for mining, has breached its all time high.

8. Address activity

Ethereum’s active daily address has been exploding.

9. ETH leaving exchanges

ETH are rapidly leaving exchanges, implying accumulation or usage in DeFi and other activities.

10. Technicals

When most people (with capital) believe that the VALUE of something will go up, and the technicals look good, the price usually follows.

As of writing this, ETH/USD is 20 minutes away from closing its all-time high daily candle.

Macro weekly ETH/USD look good

Golden cross on ETH/BTC

Macro weekly ETH/BTC chart looks good too, will retesting 200 Weekly SMA

11. ETH futures launch in less than a week

CME Group to is launching ETH Futures on February 8, 2021.

The end