Bitcoin and Ethereum are currently surviving a bearish fear, with both assets holding roughly a position above their immediate supports. For Bitcoin, the $ 41,000 level establishes a strong rebound range while Ethereum has managed to stay above $ 3,000.
On the contrary, some altcoins saw strong recoveries with Solana, Bitcoin Cash and Uniswap increasing by more than 10% in a 24 hour window.
Now, these altcoins appeared to have the relative advantage at press time. However, there are a few key metrics that can allow us to assess the real strength of Bitcoin, Ethereum as the market progresses.
What importance should be given to utility?
In recent years, the stability of the market has depended on various aspects. During the bullish rally of 2017, investor sentiment was key and when major traders started to turn bearish, digital assets collapsed.
Then it was a constructive institutional influx in early 2019. At the time, it was suggested that institutions could allow tokens like BTC, ETH to hold higher price positions. The price fell in 2020, regardless of the rise in interest.
However, a key idea missed by most speculators could be the utility side of things, which is currently one of the most important features. Gone are the days when clever marketing allowed assets like TRON to climb into the top 10.
Now according to Feeling, Bitcoin hit a two-month high in terms of circulation. Moreover, if the chart is observed closely, the average BTC transferred has steadily increased during the month of September.
Likewise, Ethereum achieved a similar feat, but its 1-day circulation index was at a 3-month high, indicating high utility and movement in tokens.
The price of Ethereum has fallen sharply in recent weeks, but circulation has remained high.
Bitcoin, Ethereum spaces have evolved
Now, to be fair, it’s important to consider volatility and the fact that circulation is not as high as it was in May 2021. However, maintaining an ecosystem of development and transactions intensive, which allows the price to be built on solid foundations, is ultimately advantageous.
Now, when it comes to assets that have grown over the past few days, besides BCH, Solana and Uniswap are extremely used tokens. While one is the native token of a major DEX, another asset is currently tasked with delivering better L2 solutions.
Likewise, for Bitcoin and Ethereum, higher utility and circulation are expected to keep the asset relevant and gradually show large recoveries in the fourth quarter of 2021.