According to BlockBeats, Markus Thielen, the founder of 10x Research, stated on social media on May 10th that Bitcoin (BTC) and Ethereum (ETH) continue to show a high correlation in this cycle, with a correlation coefficient reaching 95%. He pointed out that the weak fundamentals of Ethereum are becoming an obstacle for Bitcoin, as they prevent a large-scale influx of fiat currency into the crypto ecosystem.
In the previous 2020/2021 cycle, Thielen noted that Ethereum was a driving factor as it was supposed to replace the traditional banking system. The minting of Non-Fungible Tokens (NFTs) opened up new areas for crypto adoption, which could have been extended to various personalized files on the blockchain, promoting widespread 'wallet' adoption. However, Ethereum developers did not respond quickly.
Thielen's observations highlight the interconnectedness of major cryptocurrencies and the potential impact of their performance on the broader crypto ecosystem. The high correlation between BTC and ETH underscores the influence of Ethereum's performance on Bitcoin and the crypto market at large. The lack of a swift response from Ethereum developers to the opportunities presented by NFTs and potential for wider wallet adoption also raises questions about the future development of the crypto ecosystem.
