Ethereum just broke its former record level, as Bitcoin took off, took that record back in 2020. However, an investment in the top altcoin at any time since the bottom of 2018 has resulted in a much higher ROI than an equal share of the USD investment in BTC.
Why does this incredible over-performance exist? And will it continue in the future, or is it time for a trend reversal?
Bitcoin Rising Tide Raises Larger Crypto Market Again
The quote “a rising tide is lifting all boats” applies well to the general cryptocurrency market. When Bitcoin rises, it brings the rest of the market with it. And if it does fall, the main cryptocurrency by market capitalization drags the rest of the market with it.
Bitcoin’s much talked about rapid rise in 2017 helped interest in other altcoins such as Ethereum, Litecoin and XRP. Ethereum had an added benefit of being the foundation on which many other notable altcoins were built at the time, making FOMO the second-ranked crypto asset.
Related reading | Techniques point to extensive Ethereum dominance over Bitcoin
As strong as Bitcoin performed, altcoins exceeded the shocking ROI by miles. But when the bubble popped, Bitcoin, Ethereum and the rest of the altcoins collapsed.
Another popular quote, “the bigger they are, the harder they fall” came into play then. Altcoins rising tens to hundreds of times higher than Bitcoin crashed a whopping 99%, while the top cryptocurrency managed to hold on more with only a decrease of 84%.
– HornHairs 🌊 (@CryptoHornHairs) January 24, 2021
Ethereum and Altcoins could be more profitable in the short term, here’s why
According to a crypto analystBuying Ethereum anytime in 2019 and beyond would have resulted in a stronger USD return than an equal investment in Bitcoin.
However, the statement is true, starting with the low around 2018. As of December 2018, any investment that Ethereum would have vastly outperformed BTC detained until now.
Ethereum is up 1700% during the same period Bitcoin is climbed 1000% | Source: ETHUSD on TradingView.com
In the same time frame, Ethereum is up 1700% while Bitcoin has grown only a little more than two-thirds thereof with an ROI of 1000%.
There is so much more to restore, and a market that is much less liquid and has a lower market cap the money coming in to move Ethereum far beyond any BTC.
Related reading | Altcoin Expert: Buy Crypto That Holds Up During Bitcoin Breakdown
Techniques suggest this trend will continue for a while. And as the following altcoin season is something like the latter, even though Bitcoin will hit shocking record prices, most of the wealth could be earned by investing in the underdogs instead.
Featured image from Deposit Photos, Charts from TradingView.com