Ethereum has been experiencing significant growth recently, particularly among institutional investors who anticipate that this leading altcoin will surpass Bitcoin in performance. This trend is highlighted by substantial purchases of ETH, as Ethereum treasury companies emerge as influential participants in the market.
In a recent interview with SquawkBox, Mike Novogratz, the billionaire CEO of Galaxy Digital Investments, emphasized the critical price point Ethereum must surpass to enter a phase of price discovery, specifically noting the importance of breaking the $4,000 mark. He attributes Ethereum's recent strength and rapid accumulation as key factors that make it a more appealing investment compared to Bitcoin.
Novogratz pointed out that the growing presence of Ethereum treasury companies, such as SharpLink and GameSquare Holdings, contributes to this optimism. As these firms continue to accumulate ETH, he suggests that the limited supply will likely lead to an increase in Ethereum's price. Furthermore, he highlighted Ethereum's compelling narrative and noted that the market's record levels of short positions have contributed to its bullish outlook.
According to Novogratz, Ethereum is poised to test the $4,000 level multiple times, and if it manages to surpass this threshold, it could trigger a significant price discovery phase, potentially leading to even higher valuations. He expressed confidence that Ethereum could outperform Bitcoin over the next three to six months, especially given Bitcoin's recent history of achieving new all-time highs while Ethereum has yet to surpass its previous peaks from 2021.
For the month of July, Ethereum has demonstrated remarkable gains, significantly outperforming Bitcoin. Data from CryptoRank indicates that ETH has surged over 45% this month, compared to Bitcoin's modest increase of less than 8%. Over the past 90 days, Ethereum's price has more than doubled, resulting in gains exceeding 100%, while Bitcoin's growth during the same period remains just above 22%.
Despite Ethereum's impressive performance, Bitcoin continues to maintain its dominance in the market, with BTC dominance exceeding 61%, which has kept the altcoin season in check.
