Although both Ethereum and Bitcoin fell from record highs, ETH is up 530% since December, which widens its gap against BTC by more than 400 percentage points. It also offsets the fact that Bitcoin's market cap is around $ 1.1 trillion, almost double the value of Ether at $ 550 billion.

The most significant difference between the two is that Ether sees more growth, thanks to other sectors in the crypto world, such as DeFi, NFT and metaverse.

"The current BTC trading window seems to associate the asset more with global currency trends, inflation hedges, etc," said Stephane Ouellette, CEO and co-founder of FRNT Financial. "While ETH has, at least from a current market perception standpoint, higher correlations with the growth of crypto sub-sectors," he added.

Ether is at the heart of the Ethereum network, the dominant blockchain used for thousands of decentralized applications, which has become more and more popular this year. It has gone through an update that was expected to help make it faster and more scalable.

As such, the token is heading to record highs again, resuming the rally that was canceled late last week amid wider risky asset turmoil. During that time, Ether bounced off $ 3,900 and rose by roughly 13%.

Dogecoin skyrocketed as well, climbing around 3.1%.

And on Tuesday, Ether rose 4.9% to $ 4,671 before cutting profits. Investors bought approximately $ 23 million worth of Ether last week, according to data compiled by CoinShares. This makes it ahead of Bitcoin this year, with the exception of four months. Right now, one Ether is equivalent to roughly 8% of Bitcoin.

Bitcoin, meanwhile, is down 1.9% to $ 57,221, below the record high of nearly $ 69,000 earlier this month.

Miller Tabak chief strategist Matt Maley said: "I don't want to get too excited about this move too quickly. However, ethereum has been outperforming bitcoin over the past month. Should it break out above its mid-November highs while bitcoin continues to sit below both its mid-November and its April highs, it will show that ether has become the new crypto of choice for most investors."