Why Ethereum Could Outpace Bitcoin Soon? Raoul Pal Highlights Top Factors

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Both Bitcoin and Ethereum have experienced impressive growth in the last 30 days. The Bitcoin market has registered a surge of 21.6%, and the Ethereum market a rise of 19.2%. A recent post by Raoul Pal suggests that ETH may soon outperform BTC. He highlights some key factors to support his argument. Let’s explore the factors! 

ETH Set to Outpace BTC, Says Crypto Expert 

The Bitcoin market is about to enter the third year of the latest four-year cycle. Usually, the third year of a cycle is when the BTC market delivers its best performance. The trend is not different in the Ethereum market. 

Pal predicts that Ethereum will outshine Bitcoin in this cycle. 

Just thinking out loud…

I've been expecting $ETH to start gaining lost ground on BTC. It's partly driven by the risk taking cycle but it's also driven by the election

You see, now that regulation is likely to dramatically improve for crypto it allows two key potential…

— Raoul Pal (@RaoulGMI) November 8, 2024 Key Factors To Boost Ethereum’s Performance 

Here are the key factors that the crypto expert highlights: 

Improved Regulation 

The crypto regulation framework has evolved positively over the years, and is expected to improve further in the coming days. In many ways, this progress could drive the growth of Ethereum. 

DeFi Utility 

DeFi tokens may become highly lucrative in future, as they could offer substantial yields or rewards. 

TradFi Adoption 

As Ethereum is renowned for its trustworthiness, it has a high chance to become the preferred chain for traditional financial use cases.

Institutional Investment 

An increase in yield is likely to attract institutional investors, potentially creating opportunities for new, innovative, financial products.

Pal forecasts that, even though Ethereum could outperform Bitcoin in the present cycle, it might still not outpace Solana. Interestingly, He experts SOL to lag behind SUI. 

ETH Market Cycle Overview 

In the first year of the present cycle, the Ethereum market witnessed an annual price change of +90.8%. This year, in the first quarter, the market recorded a return of +59.8%. In the second quarter, it dropped to -5.80%. In the third, it slipped further down to -24.5%. This quarter, the market has registered a +12.2% surge so far. Since the US election day, the market has climbed by 21.40%. Right now, the ETH price stands at $2,909.13.  

In conclusion, the crypto expert suggests that favorable regulations and institutional interest could fuel Ethreuem’s growth over Bitcoin, making ETH a key asset to watch in this cycle.