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The post <a href="https://coinpedia.org/news/ethereum-eth-price-surges-past-2900-overperforming-bitcoin-in-recent-rally/">Ethereum Outperforms Bitcoin: ETH Price Hits 2-Year High with 16% Jump</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a> 
<a href="https://markets.coinpedia.org/ethereum/" target="_blank" rel="noreferrer noopener">Ethereum</a> has grabbed the spotlight, outshining <a href="https://markets.coinpedia.org/bitcoin/" target="_blank" rel="noreferrer noopener">Bitcoin</a> in the crypto market with a remarkable surge. Soaring over 16% in just seven days, Ethereum broke the $2,900 barrier, marking its highest point in almost two years. 
This unexpected turn of events has reignited excitement among crypto enthusiasts, positioning Ethereum as the front-runner in the current market rally. 
<h2 class="wp-block-heading" id="h-ethereum-vs-bitcoin-performance">Ethereum vs. Bitcoin Performance</h2> 
While Bitcoin experienced a more modest 8.5% increase, reaching $52,300, Ethereum’s ratio against Bitcoin surged by almost 7%, reaching 0.055. This shift follows weeks of Ethereum playing catch-up to Bitcoin, which gained attention due to the introduction of <a href="https://markets.coinpedia.org/bitcoin-etf/" target="_blank" rel="noreferrer noopener">spot BTC ETFs</a> in the U.S. and the approaching quadrennial reward halving. 
<h2 class="wp-block-heading" id="h-factors-driving-ethereum-s-surge">Factors Driving Ethereum’s Surge</h2> 
Greg Magadini, Director of Derivatives at Amberdata, suggests that Ethereum’s fundamentals now stand stronger than Bitcoin’s. 
<blockquote class="wp-block-quote"> 
 “Everyone is talking about the Bitcoin halving in April, but that’s nothing compared to the active ‘REDUCTION’ in ETH supply already occurring since Sept. 2022.” He emphasizes that “ETH is the next play here! Low ETH/BTC ratio, actively finding a bid, [with ETH’s] fundamental supply picture even better than BTC.” 
</blockquote> 
Deflationary Trend Post ‘The Merge’ 
Since ‘The Merge,’ Ethereum has burned 1,407,200 ETH, resulting in a net supply reduction of 359,557 ETH or 0.209% year-on-year. Magadini points out that this deflationary trend is due to Ethereum burning a portion of transaction fees paid to validators. 
<blockquote class="wp-block-quote"> 
 “Combine this ETH ‘Supply BURN’ with dormant STAKED ETH and mix in a SPOT ETF actively putting ETH into cold storage … all of a sudden, the supply story for ETH is as bullish as fundamentals can get.” 
</blockquote> 
Also Read: <a href="https://coinpedia.org/news/massive-whale-bought-155-7-million-worth-of-ethereum-making-price-soar-to-almost-3000/">Ethereum Whale Accumulated $155.7M Worth Of ETH, Price Near To Hit $3,000</a> 
<h2 class="wp-block-heading" id="h-pushing-the-bullish-momentum">Pushing the Bullish Momentum</h2> 
Several factors contribute to <a href="https://coinpedia.org/price-prediction/market-price-prediction-ethereum-2019/" target="_blank" rel="noreferrer noopener">Ethereum’s bullish momentum</a>. The eagerly anticipated <a href="https://coinpedia.org/information/how-ethereums-dencun-upgrade-is-catalyzing-the-next-wave-of-crypto-adoption/#:~:text=With%20the%20Dencun%20upgrade%2C%20Ethereum,Ethereum%20to%20support%20global%20adoption.">Dencun upgrade</a>, scheduled for March 13, is expected to significantly reduce transaction costs, making the Ethereum network even more appealing. 
In addition, Ethereum co-founder Vitalik Buterin expressed his excitement about integrating AI with the Ethereum network, <a href="https://x.com/VitalikButerin/status/1759369749887332577?s=20">stating</a>, 
<blockquote class="wp-block-quote"> 
 “One application of AI that I am excited about is AI-assisted formal verification of code and bug finding. Right now ethereum’s biggest technical risk probably is bugs in code, and anything that could significantly change the game on that would be amazing.” 
</blockquote> 
Furthermore, there’s anticipation surrounding the SEC’s potential approval of spot ether ETFs in the U.S. later this year. Magadini highlights the significance of AI in this context, suggesting that AI integration can further enhance Ethereum’s standing. 
<h2 class="wp-block-heading" id="h-ethereum-s-rise-to-the-top">Ethereum’s Rise to the Top</h2> 
Ethereum’s recent surge above $2,900 signifies more than just a numerical milestone. It marks a significant shift in market dynamics, with Ethereum now taking the lead in the crypto rally, leaving Bitcoin in its wake. The combination of reduced ETH supply, positive developments like the upcoming Dencun upgrade, AI integration, and potential ETF approval all contribute to Ethereum’s undeniable bullish momentum. 
Ethereum stands tall as the current front-runner, capturing the attention and enthusiasm of the market.

Ethereum Outperforms Bitcoin: ETH Price Hits 2-Year High with 16% Jump

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