Ethereum has been rising against bitcoin recently, up from around ₿0.018 at the end of last month to a recent high of ₿0.0206.
Currently it is trading at around ₿0.0203, with ethereum gaining against bitcoin and thus gaining more in price.
Ethereum has reached $190 today, up by close to 2%, while bitcoin has risen a bit too, but at just 0.5%.
That might suggest there’s a new maybe mini-altseason brewing, or it could also be the beginning of a full blown alts parade.
If it does, then it would probably be because bitcoin’s market share is a bit too high at 67%.
There’s of course plenty of reasons why bitcoin gets much attention, but there’s at least one reason why other coins should too:
That’s quite a chart that shows somewhat clearly the suggested fee model under constrained blocks has failed.
According to this chart, on the 22nd of December 2017, $22.7 million was paid in fees in one day for about 300,000 transactions.
That level has not been reached again, plunging to $100,000 in April 2018. This April, fees began rising in line with the price, reaching a November 2017 peak in July when $2.5 million was paid to miners in one day.
Again it falls to a low of $100,000 last month, a level first reached in 2016. On Monday, however, there has been an increase to about half a million.
What this shows is that, firstly, there’s a certain level of economic activity in bitcoin that is unrelated to price, with that level being at around $100,000 to $200,000 in fees.
This level has not changed for two years, presumably because there isn’t much room for growth.
There’s of course the Lightning Network, but now nearly two years on, everyone can see it doesn’t really work because it’s a chicken and egg problem to get people to use it in addition to it being not user friendly at all.
Real solutions are not being considered in bitcoin even as 10MB/s download speeds are now the new normal.
So arguably the only way for economic activity to grow is to use other networks, like ethereum or BCH or whatever is your flavor.
That would arguably mean bitcoin’s market share might fall, while its price against the dollar might still rise.
That’s because while usage is one utility, stagnation could be a utility of sorts too, as of course is speculation.
Speculation which can also include a consideration of which coin might rise faster. Hence the volatility in the ratio as a Litecoin rise gives way to a Stellar rise which seems to be pushing ethereum.