Why Is Ethereum Surging, Outperforming Bitcoin Today?

Gains in Bitcoin (BTC) appear faint in comparison with Ethereum (ETH) as the latter’s supply diminishes.

What Happened: BTC traded 0.13% at $59,285.22 over 24 hours at press time while ETH was up 4.08% at $1,925.03. 

Over a seven-day trailing period, ETH has surged 21.92%, while BTC has moved up 12.77%.

CryptoQuant data indicates ETH reserves held in all wallets fell to 19.53 million as of March 31 as prices soared over $1,921.

ETH Held In All Exchange Wallets — Data From CryptoQuant.com

On Wednesday, OpenSea, a non-fungible token marketplace said it would add support for trading through Immutable X, a decentralized protocol built on Ethereum, which it said would enable zero gas fee.

Immutable X is coming to OpenSea! We're excited to announce OpenSea will soon support the trading of NFTs on their gas-free layer-2 protocol, built directly on Ethereum. #Immutable #OpenSea pic.twitter.com/B3Y5j7Lfue

— OpenSea (@opensea) March 31, 2021

Why It Matters: BTC has been losing its dominance as the largest cryptocurrency by market capitalization of late. This week the dominance fell to its lowest since October last year.

At press time, BTC had a 56.6% dominance, while ETH had 11.7%, according to CoinMarketCap data.

On Monday, Visa Inc (NYSE: V) announced a pilot to allow transactions to be settled through USD Coin (USDC) on its network. 

Reacting to the development, analyst Michaël van de Poppe said on Twitter that Ethereum was “going to surprise everyone massively."

He had previously predicted a $10,000 price level for ETH.

See also: How to Buy Ethereum (ETH)