Ethereum (ETH) has recently demonstrated stronger short-term price performance compared to Bitcoin (BTC), fueled by a series of encouraging network updates and ecosystem growth. Over the past 24 hours, ETH's price increase slightly outpaced that of BTC, reflecting renewed optimism among investors and developers.
Short-Term Price Movement
As of the latest data, Ethereum is trading around $2,680, marking a 6% gain within 24 hours. Bitcoin, on the other hand, is valued at approximately $40,424, having increased nearly 5% during the same period. While ETH leads in daily gains, Bitcoin continues to show stronger performance on weekly and monthly timelines. Year-over-year, Ethereum remains up by around 50%, whereas Bitcoin has declined by 28%.
The Merge and Testnet Progress
This positive short-term momentum for Ethereum follows Tuesday’s announcement from core developer Tim Beiko that Kiln—the final testnet simulating the Merge to Proof-of-Stake (PoS)—has successfully met the basic requirements for the consensus transition.
“The current Ethereum Proof-of-Work (PoW) blockchain will merge with the Beacon Chain’s Proof-of-Stake mechanism during this event,” Beiko stated.
However, he later noted that the testnet encountered minor technical issues, tweeting: “It appears one client isn’t delivering blocks regularly. The network is stable, and about two-thirds of validators are performing effectively. We are looking into it.”
Developer Marius Van Der Wijden also confirmed that the team was investigating several minor bugs. Despite these small hiccups, the overall progress toward the Merge remains on track, generating optimism across the community.
On-Chain and Ecosystem Growth
Blockchain analytics firm Santiment highlighted a interesting trend on Wednesday. Although Ethereum’s price has declined by 35% over the past four months, the utility of the network has held steady.
“There is a bullish divergence between Daily Active Addresses (DAA) and price. The number of unique addresses interacting on the Ethereum network has remained consistent,” Santiment reported.
In another significant development, ConsenSys—a leading blockchain technology firm focused on Ethereum—announced that its MetaMask wallet now serves over 30 million monthly active users. This reflects a 42% growth in just four months.
According to MetaMask, “Users worldwide rely on MetaMask to mint and collect NFTs, join DAOs, and participate in DeFi protocols.”
ConsenSys recently raised $450 million in a Series D funding round, which doubled its valuation to over $7 billion since November 2021. All investments from this round were converted to ETH.
Joseph Lubin, ConsenSys founder and CEO—also a co-founder of Ethereum—shared that the investment included both fiat and digital assets. He introduced the concept of “Our ETH Series,” explaining that future seed rounds may allow contributors to commit ETH as a sign of support for the evolving ecosystem.
Broader Market Context
Lubin also commented on competing blockchain networks, such as Solana (SOL), which has been expanding rapidly. He expressed concerns about the long-term sustainability of networks that offer large incentives to users for completing transactions, emphasizing the need for more sustainable economic models in the industry.
Ethereum’s ongoing transition to Proof-of-Stake aims to address scalability, energy consumption, and economic efficiency, which could further strengthen its position in the market.
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Frequently Asked Questions
What is the Ethereum Merge?
The Merge refers to Ethereum’s transition from a Proof-of-Work (PoW) consensus mechanism to Proof-of-Stake (PoS). This upgrade aims to improve scalability, reduce energy consumption, and enhance network security.
Why did Ethereum’s price increase recently?
The price rise is largely attributed to positive developments around the Merge, along with growing adoption of Ethereum-based applications like MetaMask, NFTs, and DeFi protocols.
How does Proof-of-Stake differ from Proof-of-Work?
Proof-of-Stake relies on validators who lock up cryptocurrency to secure the network, whereas Proof-of-Work requires miners to solve complex mathematical problems. PoS is generally more energy-efficient and scalable.
What are the risks of investing in Ethereum?
Like all cryptocurrencies, Ethereum is subject to market volatility, regulatory changes, and technological challenges. Network upgrades, while promising, also carry execution risks.
Can Ethereum maintain its lead against competitors?
Ethereum benefits from a large developer community and established ecosystem. However, it faces competition from other blockchains that offer higher throughput or lower fees. Its future success may depend on the timely implementation of key upgrades.
What is MetaMask?
MetaMask is a software cryptocurrency wallet used to interact with the Ethereum blockchain. It allows users to manage keys, execute transactions, and connect to decentralized applications.