Author: Ciaran Lyons, CoinTelegraph; Compiled by Wuzhu, Golden Finance
A key metric used to determine whether Ethereum is overvalued has been “heating up” relative to Bitcoin — although one analyst believes the asset may not yet have entered overbought territory.
Ki Young Ju, CEO of cryptocurrency analytics firm CryptoQuant, noted that while Ethereum’s market value realized (MVRV) is rising rapidly, so too are transaction volume and active addresses on the Ethereum network.
“ETH MVRV is rising faster than BTC MVRV, indicating that ETH markets are heating up relative to its on-chain fundamentals,” Ju wrote in an X post on June 19.
MVRV indicates whether an asset is trading above or below its fair price, which is essentially the difference between what a user paid for an asset and the current market price.
According to data from Santiment, Ethereum’s MVRV has risen 29.9% to 91.43% compared to Bitcoin over the past 30 days, while Bitcoin’s MVRV has gone the other way, falling 10.8% to 127.41% over the same period.
Ethereum MVRV ratio chart. Source: Santiment
A high MVRV means that Ethereum’s market value is higher than its actual value - indicating that it is overvalued, which could raise concerns about a potential sell-off in the future.
When it falls, it indicates that the market is cooling down and the price may be approaching its fair value.
However, Ju said that with the spot Ethereum ETF expected to begin trading soon, the high MVRV is unlikely to scare off investors.
“Given the current ETF situation, this may be an ETH-only season,” Ju added, referring to the timeline for ETF trading, with SEC Chairman Gary Gensler reportedly saying ETF trading will begin “this summer,” while ETF analyst Eric Balchunas said it could start as early as July 2.
Anonymous crypto analyst Yoddha pointed out Ethereum's current price position on the chart and pointed out that there has been a slight consolidation - a signal of a bullish reversal from the bottom of the downtrend.
“Ethereum’s price has held up pretty well and looks ready for a crazy rally,” anonymous crypto analyst Yoddha wrote on June 19.
“Ethereum will be over $10,000 before the end of the year.Mark my words,” Yoddha added.
As of the time of publishing, Ethereum is trading at $3,556, according to CoinMarketCap.
Ethereum has gained 14.81% in the past 30 days. Source: CoinMarketCap
On June 18, Ethereum climbed back above the key $3,500 mark, up 1.37%, after Consensys announced that the U.S. Securities and Exchange Commission (SEC) had ended its investigation into whether ETH qualifies as a security.
Ethereum’s dominance in the cryptocurrency market has also grown significantly, up 6.62% in the past seven days, according to TradingView. Meanwhile, Bitcoin’s dominance has slightly decreased over the same period, to 0.23%.
As of the time of publication, Ethereum’s dominance is 18.8%, while Bitcoin’s dominance is 55.31%.
Mocaverse, an NFT project by Animoca Brands, has gained attention for its unique digital characters and strong community focus. Its MOCA token surged by over 80% after an airdrop, despite a drop in the NFTs' floor price.
WeatherlyBetween 2018 and 2023, illegal cryptocurrency miners in Malaysia stole approximately $723M (RM3.B) worth of electricity. Could the reduction of miners’ rewards by 50% due to April’s Bitcoin halving be fuelling the surge in electricity theft?
KikyoDo Kwon's wife successfully defended her assets in court amid accusations tied to the TerraUSD collapse, securing protection for properties contested by the South Korean government. Meanwhile, Kwon faces extradition requests from the US and South Korea, complicating his legal standing while detained in Montenegro.
AnaisManta Network has partnered with BONK to launch a meme-themed campaign. This collaboration aims to build an interconnected meme community and boost user engagement and eligible participants can claim MANTA rewards over the next month.
CatherineMasa Network empowers users by letting them control and monetise their own data on a blockchain platform, challenging big tech's control over AI training data. It aims to ensure privacy with encrypted data sharing and incentivises users and developers through its decentralised marketplace and dual-token rewards.
JoyHamster Kombat is causing a surge in massage gun sales in Russia, as players use them to enhance screen tapping. The game is also facing criticism for its social pressure tactics to grow its user base.
KikyoSouth Korea is delaying its cryptocurrency gains tax until 2028 amid market concerns and investor backlash, aiming to stabilize its vibrant but volatile crypto market. The decision reflects worries over potential market destabilization and aims to develop a more sustainable tax framework for the future.
Weatherly
AlexAlexRevolon, a Web3 dystopian racing game, features players as underdogs fighting for survival. The IDO week runs from 18 to 24 July, ending with the TGE on 25 July. Will Revolon lead the Web3 racing realm or fall behind?
Catherine