Ethereum (ETH) outperformed Bitcoin (BTC) in the crypto asset market in 2021.
The year 2021 has become one of the most successful periods in the history of the cryptocurrency market. Bitcoin reached an all-time high of $65,000 and closed the year with 58% growth. But at the same time, altcoins like Ethereum also showed impressive results.
According to quarterly data from ETH, the asset has outperformed Bitcoin in every quarter of 2021. The first quarter of the year was Ethereum’s most successful, ending with a 102% price increase from January to April.
Ethereum outperforming overall is no surprise to the majority of the market. Throughout the year, numerous factors have moved in favor of the biggest altcoins, such as the NFT craze skyrocketing in gas fees, the DeFi industry increasing usage, and the network receiving constant updates.
EIP-1559 update is also important as it makes Ethereum deflationary in the future. This stands out as one of the points that positively affect performance.
As for the largest cryptocurrency in the market, Bitcoin entered 2022 with 2021 price action and volatility. The asset is currently trading in the $51,000 and $46,000 range. Various cryptocurrency experts believe that Bitcoin’s prolonged consolidation is nearing its end as its volatility has dropped to extremely low levels.