In an intriguing turn of events, a cryptocurrency with Ethereum ETH/USD in its name has outperformed the original blue-chip currency in weekly gains.
What Happened: Ethereum Name Service ENS/USD nearly doubled over the week, according to data from Benzinga Pro, becoming the market's largest gainer in the said time period. The coin outperformed heavyweights like Bitcoin (CRYPTO: Bitcoin) and Dogecoin DOGE/USD on its way to the top.
Ethereum, the world’s second-largest cryptocurrency, meanwhile, saw its weekly gains pale in comparison, growing by 27% during the last seven days.
The 24-hour trading volumes also present a telling contrast. While ENS soared 170%, Ethereum saw a 72% rise in trades.
Why It Matters: ENS is a token associated with Ethereum Name Service, a decentralized naming system that converts complex, machine-readable names to ones that could be more easily comprehended by humans. Think of it as similar to the role played by the internet’s Domain Name Service.
Its recent success, though, could be tied to the approval of Ethereum's spot ETFs last week.
While bullish sentiment around Ether grew manifold, its high price, around $3,900 for one unit, could be a big deterrent for retail investors.
Instead, they might have chosen to invest in a cheaper coin with Ethereum in the name. A similar surge was seen for Ethereum Classic ETC/USD on the ETF approval day.
Well-known cryptocurrency trader Doğu Tekinoğlu Doğu talked about his strategy to buy ENS at the bottom, which was vindicated because of the latest uptick.
"I said their time would come, I don’t like bulky coins, but these two are an exception," he added.
The trader stated that he was positioned for ENS’ next goal of $40.
Photo by Avi Rozen on Shutterstock
Price Action: At the time of writing, ENS was trading at $26.25 following a 12% surge in the last 24 hours, according to data from Benzinga Pro.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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