- Despite the volatile nature of the cryptocurrency market, Ethereum has provided the best returns over the last year.
- The blockchain of choice in decentralised finance (DeFi) topped the charts in October, as the overall space reached an all-time high of $245.5 billion.
- Despite the higher returns, Ethereum has seen outflows in the last two weeks, while Bitcoin remains the popular choice.
Ethereum To Provide The Best Returns To Investors
There is no denying that cryptocurrencies are more volatile than traditional assets such as stock market shares. However, it is this same characteristic that provides the most compensation. When it comes to Ethereum, the cryptocurrency outperforms Bitcoin, the stock market, and even gold.
The ‘Sharpe’ ratio — one of the most well-known reward-to-risk measures used by investors — was used by the digital asset evaluation firm Kaiko to compare the returns of Ethereum and Bitcoin to the S&P 500, NASDAQ, bond market, and gold. Furthermore, the’smart contract’ cryptocurrency outperformed all other major investment assets.
When it comes to decentralised finance, Ethereum is the blockchain to use (DeFi). According to CryptoRank, the total accumulated value of the overall DeFi market reached an all-time high of $245.5 billion in October, a 31% increase over September. In addition, Ethereum led the chart with long-term investments totaling $150 billion.
Despite Ethereum’s returns, Bitcoin continues to be the crowd favorite
Despite the higher returns on Ethereum, investors have been withdrawing funds over the last two weeks. Only in the last week, according to CoinShares’ weekly report, were there outflows of $1 million.
This is despite the overall momentum of ‘Uptober,’ which has increased total assets under management to $72.3 billion, the highest level in CoinShares’ history, according to the company’s latest report.
Bitcoin led the charge, attracting $70 million in inflows for the fifth week in a row.
According to CoinShares, the outflows aren’t significant enough to indicate a trend. One of the reasons could be altcoins competing in the same’smart contract’ space as Ethereum.
Cardano, for example, received $2.7 million in inflows, while Polkadot received $3.6 million.
Source: Business Insider India