In light of the fact that the recent bitcoin (BTC) rally is starting to slow down, Ethereum (ETH) is preparing for a potential explosive growth.

According to a researcher in the field of DeFi, Ethereum may be on the verge of a rally that will lead to the fact that the second largest cryptocurrency will become a more profitable asset, overtaking bitcoin.

In early December, ETH was 24% less profitable than bitcoin. But some fundamental factors hint that the situation may change in the near future.

First of all, investors are increasingly interested in the discounted Grayscale Ethereum Trust (GETH) fund, which has grown by 298% over the past few months, while ETH has risen in price by only 100% over the same period. The gradual reduction in the discount of GETH shares relative to spot Ethereum indicates that capital is flowing into ETH, contributing to an increase in demand.

In addition, the approval of the first spot bitcoin ETF will draw attention to Ethereum. It is expected that the Securities and Exchange Commission (SEC) may approve several applications, including those submitted by Fidelity and BlackRock. This may shift the attention and interest of the community to the first spot ETF on Ethereum after approval, which contributes to an increase in the price of ETH.

It should also be noted that the activation of the Cancun update is expected in the first half of 2024, which is likely to support the growth of ETH prices. This upgrade is aimed at increasing the scalability of the blockchain and reducing the amount of gas fees.