Ethereum On-Chain Metric Hints at Potential Altcoin Market Surge
CryptoQuant, a well-known digital asset analytics firm, has presented data suggesting that the altcoin market might be gearing up for a price surge. According to their insights, an Ethereum (ETH) on-chain metric points towards this possibility.
Ethereum’s MVRV Indicator Rises Faster Than Bitcoin's
The Market Value to Realized Value (MVRV) indicator for Ethereum is showing notable growth when compared to that of Bitcoin (BTC). This rising MVRV for Ethereum suggests that ETH’s market is heating up. Historically, when Ethereum experiences a spike in its price, other altcoins tend to follow suit.
What is MVRV?
MVRV is a crucial metric in the world of digital assets. It is the ratio of a digital asset’s market capitalization relative to its realized capitalization, which is the value of all the assets based on the prices at which they were bought. This metric helps in assessing whether a token is undervalued or overvalued.
Current Market Performance
Ethereum (ETH) is currently trading at $3,514. Despite its potential for a surge, ETH has largely been trading sideways over the past week.
On the other hand, Bitcoin (BTC) is trading below its critical support level of $65,800, indicating a possible correction in price. CryptoQuant suggests that BTC could see an 8%-12% correction towards $60,000. At the moment, BTC is priced at $64,148, showing a decline of nearly 1.5% in the past 24 hours and more than 3% over the past week.
Expert Insights
According to Julio Moreno, head of research at CryptoQuant, the Bitcoin market is currently at its least bullish point since September 2023, based on their bull market cycle indicator.
These insights from CryptoQuant emphasize the importance of keeping a close watch on market trends and indicators to make informed decisions in the ever-evolving world of digital assets.
