Ethereum [ETH] fared better than SOL, NEAR, AVAX on YTD basis, thanks to…

• ETH’s value fared significantly higher than different layer-1 altcoins this 12 months.
• SOL suffered essentially the most decline in worth. 

On a year-to-date foundation, the worth of main altcoin Ethereum [ETH] fared higher than different layer-1 altcoins (Alt L1s), together with Solana [SOL], Close to [NEAR], and Avalanche [AVAX], a brand new report revealed. 

The cryptocurrency market has skilled a major downturn in latest months, with a complete lack of over $1.4 trillion in worth. This decline has been attributed to a spread of points throughout the business, together with failed initiatives and a scarcity of liquidity.

As well as, the autumn of FTX, a significant participant available in the market, has additionally contributed to the general decline.

Learn Ethereum’s [ETH] Worth Prediction 2023-2024

In line with the report, previous to the transition of Ethereum to a proof-of-stake (POS) consensus mechanism, the unfold between ETH and Alt L1s had already begun to widen. This divergence grew to become extra vital following the Merge.

Supply: Blockworks Analysis

ETH and its friends

Exchanging arms at $1,194.62, ETH’s value has fallen by 67% since January, information from CoinMarketCap confirmed. Of the Alt L1s listed above, SOL has suffered essentially the most decline, with a 94% drop in its worth.

The latest controversy surrounding Solana and its ties to disgraced-founder Sam Bankman-Fried has additionally contributed to a lower in SOL’s worth. As well as, previously week, the community noticed main NFT initiatives announce their intentions emigrate to Ethereum and Polygon, all of which have introduced Solana’s longevity into query. 

As for NEAR, it has misplaced 90% of its worth because the 12 months began. There are, nonetheless, a sequence of upgrades to the Close to Protocol within the coming 12 months that many anticipate will result in a rally in NEAR’s worth.

In the meantime, AVAX traded at $11.24 at press time, having declined by 89% because the 12 months began. 

How a lot Ethereum are you able to get for $1?

Due to PoS

In line with the report, ETH fared significantly higher than different Alt L1s, primarily because of Ethereum’s profitable migration to a PoS consensus mechanism on 15 September. 

It was famous that essentially the most notable impression of the change to PoS for Ethereum was the change in ETH’s provide dynamics. After the Merge, ETH’s provide inflated by solely 3,800, in comparison with the 1.2 million inflation that may have occurred if the community had continued to function below Proof-of-work (PoW) consensus. On this regard, Blockworks Analysis discovered, 

“In different phrases, over $1.5B of promote strain has been faraway from the market because of the Merge in below simply 4 months,” 

Supply: Blockworks Analysis