When one speaks of Bitcoin, usually the first word that comes to our mind is “volatility“. And is that, in his eleven years of life, BTC has built a reputation as the financial asset that is more volatile in the world. However, in the last three months another criptomoneda has shown a volatility even higher than that of BTC. This is why today we will talk about as the volatility in Ethereum than Bitcoin.
Volatility in the crypto world
The volatility in the crypto market is a topic well known by everyone within and outside of the crypto community. And is that the rises in acute and crashes sudden are already a fundamental part of the dynamics of prices in criptomonedas as Bitcoin. What has driven away many investors of virtual currencies, considering them to be financial assets, very little stable.
This volatility is not a coincidence. Therefore, the same is essentially due to the size of the market of Bitcoin and other criptomonedas as Ethereum. Which, despite having a market capitalisation of several hundred million dollars. They are not large enough, and their wealth is too concentrated in a few large investors known as “whales“.
For this reason, when some of these humpback whales perform a move, whether buying or selling criptomonedas. The impact on the price isn’t expected. Being able to a few users to start or stop a bullish rally. Leading to levels of volatility that we all know in the main criptomonedas.
Ethereum surpasses Bitcoin
Despite the fact that the sudden changes in their prices is a feature of all the criptomonedas. Up to now, the king of the volatility was the Bitcoin. The first criptomoneda of the world, and also the one that, with its abrupt changes in the quote, gave it to the crypto market the fame of instability that you currently have.
However, things might be starting to change. Therefore, the measurement of volatility in the price of Ethereum and Bitcoin, computed by Skew from the options market both criptomonedas. Has shown that during the last two months Ethereum has surpassed the levels of volatility compared to Bitcoin in a 29%. While two months ago, Bitcoin was above ETH by 2.4%.
This change in the volatility of both criptomonedas, should be the major boom experienced by the finance decentralized (DeFi) during the last few weeks. What that has led to billions of dollars are dumped in this sector. Being Ethereum, the main Blockchain to the creation of smart contracts, one of the biggest beneficiaries.
Therefore, it would be logical that in the face of this influx of capital ETH, and the consequent increase in its price, the investors plan to perform movements with the criptomoneda in the coming months. Being normal volatility of the criptomoneda is enhanced, to the point of surpassing Bitcoin.