ETH/BTC Trading Pair Gains on DeFi Frenzy
Updated
The ether-bitcoin (ETH/BTC) trading pair is jumping to highs not seen since late May, which shows the strength ether is experiencing lately. This trading pair is available on almost all cryptocurrency exchanges and prices ether in terms of bitcoin – for example, 1 ETH currently equals 0.02528 BTC. It is a way for crypto traders to capitalize on price movements across the two largest digital assets by market capitalization. When a trader is bullish on ether relative to bitcoin, ETH/BTC is bought; those bullish on bitcoin relative to ether sell it.
Note
The spike in ether versus bitcoin can be attributed to the Ethereum network’s decentralized finance, or DeFi, capabilities with services like lender Compound, said Matthew Ficke, head of market development for cryptocurrency exchange OkCoin.“ETH/BTC as a trading pair is interesting as it is up,” Ficke told CoinDesk.“There is some growing market discussion around Compound’s recent success driving more interest in DeFi applications, the majority of which run on ether, which is strengthening its price.”
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