Ethereum is set to make a strong comeback in the cryptocurrency market, according to a report by Steno Research. The recent interest rate cut by the US Federal Reserve is expected to play a significant role in ETH’s price surge in the coming months.
While Ethereum has underperformed compared to Bitcoin and other altcoins like Solana and Tron, the report suggests that the tide is about to turn. The chart showing the ETH/BTC trading pair has fallen to 0.04, erasing gains made against Bitcoin since April 2021. However, Steno Research believes that Ethereum is poised for a comeback.
The report highlights the previous altcoin season, where Ethereum’s value more than doubled compared to Bitcoin in less than two months. This growth was fueled by increased on-chain activity, particularly in decentralized finance (DeFi), non-fungible tokens (NFT), and the issuance of stablecoins.
Steno Research points to lower interest rates as a catalyst for increased on-chain activity and transactional revenue, which would drive up the price of Ethereum. The report also suggests that Ethereum exchange-traded funds (ETFs) are likely to outperform Bitcoin ETFs in the future.
Despite facing headwinds such as the impact of U.S. spot ETFs and a decline in transactional revenue, investor confidence in Ethereum remains strong. Bitwise’s CIO has referred to Ethereum as the “Microsoft of blockchains,” indicating confidence in its potential resurgence after the November US presidential elections.
At the time of writing, Ethereum is trading at $2,543, showing a 4.3% increase in the past 24 hours. With the interest rate cut and the potential for increased on-chain activity, Ethereum’s comeback seems promising.