Ether (ETH) experienced a significant surge of 18.7% from September 17 to September 23, outperforming Bitcoin (BTC) in weekly gains. This momentum is underscored by rising open interest, funding rates, and network expansion, all indicating robust demand for ETH.
As of the latest figures from Cointelegraph Markets Pro and TradingView, Ether’s price has climbed by 4% in the past 24 hours, now trading at $2,650. In contrast, Bitcoin is priced at $63,678, reflecting a more modest increase of 1.8% over the same timeframe. The overall cryptocurrency market capitalization has also seen a 2% rise, reaching $2.3 trillion.
### Ether’s Performance Against Bitcoin
Over the past week, Ether has shown a 17.5% increase, surpassing Bitcoin, which has only grown by 9.8% during the same period. The ETH/BTC ratio has similarly risen by about 7.5% over the last week, hitting a three-week peak of 0.0424 on September 23.
**ETH/BTC Ratio. Source: TradingView**
The uptick in the ETH/BTC ratio points to a growing appetite for Ether. Data from Farside investors indicates that US-based spot Ethereum ETFs experienced positive inflows last week, with $5.2 million and $2.9 million recorded on September 19 and 20, respectively. However, Ethereum investment products still lag behind Bitcoin, as Ether has seen outflows totaling $29 million over the five weeks leading up to September 20, per CoinShares.
James Butterfill, head of research at CoinShares, remarked on Ether’s strong performance, noting the decline in Bitcoin’s market dominance. The accompanying chart illustrates that Bitcoin’s dominance fell from 58.7% on September 19 to 57.4% by September 23, indicating a weakening position against altcoins, including Ether.
**Bitcoin Market Dominance Chart. Source: TradingView**
As Bitcoin’s dominance continues to decline, market observers anticipate that ETH’s value against the BTC pair will keep rising, suggesting a bullish sentiment toward Ether and a potential increase in investment in Ethereum products.
According to Coinglass, the eight-hour open interest-weighted funding rate for Ether turned positive on September 16, currently standing at 0.0072%.
**Ether OI-Weighted Funding Rate. Source: Coinglass**
A positive funding rate for Ether indicates growing demand for leveraged long positions, signaling a favorable outlook.
### Ethereum Network Activity Reflects Increased Demand
Understanding Ethereum’s network activity and scaling solutions is vital for maintaining the $2,600 support level. Decentralized applications (DApps) are central to this layer-1 blockchain, and rising transaction volumes suggest an uptick in demand for ETH.
Data from DappRadar shows that the leading Ethereum DApps have experienced a slight 1.42% decline in unique active wallets over the past 24 hours, alongside a 21.92% increase in transaction volume.
**Blockchains Ranked by 24-Hour DApp Volumes. Source: DappRadar**
Furthermore, the number of DApp transactions on the Ethereum network has surged by 6.5% over the same period, driven by increases in platforms like Uniswap, Balancer, ParaSwap, and Aave.
Additionally, data from DefiLlama indicates a rise in the total value locked (TVL) on Ethereum, which grew from $44.1 billion to $49.65 billion between September 18 and 23. A higher TVL reflects greater user engagement with the blockchain, further boosting demand for Ether.
**Total Value Locked on Ethereum. Source: DefiLlama**
Continuous growth in network activity, rising Ether transactions, and increased DApp usage are crucial for sustaining ETH above the $2,600 mark.
*Disclaimer: This article does not provide investment advice or recommendations. Every investment and trading decision carries risk, and readers should conduct their own research before making any choices.*