Ethereum’s climb would not be just for money from Bitcoin

Ethher (ETH), Cryptomoned of Ethereum, has caught the attention of the market this July, with a vertiginous ascent of 60% in its price, which went from 2,398 to $ 3,850.

In general, as cryptootics has been reporting it, it is thought that the usual cryptocurrency cycle is being repeated and capital is rotating from Bitcoin to ETH.

However, the German Carmelo analyst challenge This narrative and suggests that the story is different.

The idea that investors are selling Bitcoin to buy ETH has gained strength, but is it true? Alemán resorts to the capitalization of Bitcoin, a metric that reflects the BTC market value according to the price at which each unit moved for the last time on the network.

The data, according to German, are clear. On July 25 at 11:00 UTC, this metric reached a historical maximum of 1,018 billion dollars. This indicates that the capital invested in Bitcoin is not only maintained, but it growsdiscarding a massive exit towards Ethereum, according to its interpretation. This can be seen in the following graph.

So what drives Ethereum’s rise? According to German, a key factor is the signing of the genius law by President Donald Trump, that seeks to regulate and foster stablcoins in the United States.

Ethereum, as the main network for these assets, is well positioned to benefit. Its ecosystem, robust and expanding, attracts new capital without investors abandoning their positions in Bitcoin.

“There is a new capital flow to Ethereum,” says German, stressing that this growth does not depend on a rotation from BTC, but on money that reaches ETH directly by those who have understood the importance of this ecosystem.

If German’s narrative is correct, Ethereum’s rebound could have a much larger tour than in previous cycles. The combination of a booming ecosystem, the support of new regulations and the entry of fresh capital positions ETH as a key protagonist in the market.