Bitcoin and ETH are currently trying to survive a bearish FUD, with both staying near their immediate support levels. For Bitcoin, $ 41,000 is a strong recovery range, while ETH tries to get back above $ 3,000.
On the contrary, some altcoins have made strong gains, such as SOL, BCH and UNI, which have increased more than 10% in the past 24 hours.
These altcoins appear to have a relative advantage at the time of writing. However, there are several key indicators that make it possible to measure the real strength of Bitcoin, ETH, as the market continues to develop.
BILLIONUtility How much do you have to pay attention to??
Number of Bitcoins in circulation (1 day) | Source: Santiment
The stability of the market has depended on many different aspects in recent years. During the bull run of 2017, investor sentiment was a key factor, and when the big traders started going bearish, many digital assets collapsed.
After that, constructive institutional capital poured into the market in early 2019. At the time, it was suggested that institutions like BTC would help ETH keep a higher price position. However, prices fell in 2020 despite increased interest.
On the other hand, the utility aspect, which is one of the major opportunities right now, is an important thing that most speculators are likely to miss. Gone are the days when clever marketing assets like TRON were able to make it into the top 10.
Bitcoin is currently hitting a two-month high in terms of circulation, according to Santiment. Also, if you look closely at the graph, the average number of BTC transferred in September rose steadily.
ETH volume in circulation (1-day pink) and ETH price (green) | Source: Santiment
Similarly, ETH’s 1-day circulating index is also at a three-month high, showing a sharp increase in token mobility and utility.
In summary, it can be said that the price of ETH has collapsed in the past few weeks, but the number of coins in circulation is still high.
ETH price chart | Source: Tradingview
Bitcoin, ETH room nonstop to develop
In fairness, one has to take into account the volatility and the fact that current traffic is no longer as high as it was in May 2021. However, maintaining a developed and trade-intensive ecosystem will allow prices to be built on a solid footing and ultimately to an advantage .
As for the assets that have risen in the past few days (excluding BCH), both SOL and UNI are very much used tokens. While UNI is the native token of a large decentralized exchange, SOL is the token of the Solana platform, which is currently responsible for providing better Layer 2 solutions.
Likewise, with Bitcoin and ETH, higher utility and circulation will maintain the relevance of the asset to the market and will gradually show a significant recovery move in the fourth quarter of 2021.
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