Ethereum may offer the best returns, but investors have been pulling away over the last two weeks
- Over the past one year cryptocurrency
Ethereumhas offered the best returns despite the volatile nature of the crypto market.
- The blockchain of choice in decentralised finance (
DeFi) led the charts as the overall space hit an all time high of $245.5 billion in October.
- Despite the higher returns, Ethereum has seen outflows over the past two weeks, while Bitcoin remains a crowd favourite.
AdvertisementThere’s no denying that cryptocurrencies are more volatile than other assets like stock market shares. However, this same characteristic is what offers the highest compensation. And, when it comes to Ethereum, the cryptocurrency offers better returns than Bitcoin, the stock market and even gold.
The ‘Sharpe’ ratio — one of the best-known rewards to risk measures used by investors — was used by the digital asset assessment firm, Kaiko, to compare the returns of Ethereum and Bitcoin versus the S&P 500, NASDAQ, the bond market and gold. And, the ‘smart contract’ cryptocurrency beat out all other major investment assets.
Ethereum is the blockchain of choice when it comes to decentralised finance (DeFi). The total accumulated value of the overall DeFi market hit $245.5 billion, an all time high, in October — a jump of 31% over September, according to CryptoRank. And, Ethereum led the chart with long term investments worth $150 billion.
Despite Ethereum’s returns, Bitcoin continues to be the crowd favorite
Despite Ethereum’s higher returns, investors have been pulling out money over the last two weeks. In just the last week, CoinShares’ weekly report shows that there were outflows of $1 million.
This despite the overall momentum of ‘Uptober’ pushing the total assets under management to $72.3 billion, according to CoinShares’ latest report — the highest level ever in history.
Bitcoin led the charge with $70 million in inflows — marking the fifth week in a row of funds coming in.
According to CoinShares’ report, the outflows aren’t strong enough to mark a trend. One part of the reason could be altcoins that are looking to compete in the same ‘smart contract’ space as Ethereum.
Cardano, for instance, saw inflows of $2.7 million and Polkadot of $3.6 million.
Elon Musk sparks another Shiba Inu rally ‘to the moon’ — other Shiba coins follow suit
G7 leaders favour CBDCs provided they ‘support and do no harm’ to central banks
Popular on BI
- A Trump spokeswoman mocked Pete Buttigieg's military service in a Memorial Day weekend spat with Ron DeSantis
- Family stands to lose nearly $6,000 in airfare and hotel costs after they were bumped from an overbooked cruise ship
- Flyers are 'skiplagging' to try and save money on flight tickets. Airlines hate it.
- ONGC to invest ₹1 lakh cr in energy transition, targets net-zero by 2038
- List of famous things to buy in Shimla
- With Rupay Credit Card on UPI, mobile payments pioneer Paytm deepens its leadership in UPI
- Screen-sharing and usernames on WhatsApp soon: All you need to know
- Businesses with turnover of over Rs 5 crore to generate e-invoice from August 1