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- Ethereum is one of the top-five names in the financial services which comprises of JP Morgan chase, Visa and Bitcoin
- Ether and Bitcoin are the widely used cryptocurrencies throughout the world for investment purposes and remittances
- The price of Ether jumped 16 times, while the market cap rose 17% from May 2020 to May 2021
Ethereum has grown 900% over the last year as compared to Bitcoin’s 275% jump. The fact should be stated in the start itself as Ether has all the good qualities to displace the world’s most famous cryptocurrency from its position of supremacy. The PoS system soon to be adopted by Ether will play a crucial role in framing the growth trajectory. Moreover, it offers a host of financial services based on the blockchain network and NFTs which are handy to keep the momentum going.
More than just a growth story
Bitcoin crashed nearly 37% in May owing to tweets from Elon Musk, regulations from China and the US and a host of countries joining the war cry to regulate digital currencies. Ether, too, stood tests to various regulations and fell approximately 11% over the same period. Bitcoin’s share of $1.6 trillion in market value was down 42% compared to 70% at the turn of the decade.
It is not righteous to say that Bitcoin is leading its own downfall but investors are just looking at other cryptocurrencies as well. Large scale adoption of the NFT marketplace on the Ethereum blockchain is proving fruitful. It has seen strong demand from retail as well as institutional investors who want to diversify their cryptocurrency investments.
The gap between Ether and Bitcoin reduced by $462.68 billion as institutional investors like Goldman Sachs and JP Morgan Chase alongwith strategists like Cathie Wood have voiced their opinion in favour of Ether. The 5x jump in Ether’s market cap from $85 billion at the start of the year is quite an achievement.
Bitcoin to remain numero uno for the time being
Although a lot of positives favour Ether’s growth, it will take some time to grab pole position in the crypto space. The outside validation received by Bitcoin since its inception is sturdy and firm to the ground, making it a difficult fight for Ether to get the better of it.
The debate whether Ether and Bitcoin will receive the same appreciation from stakeholders is quite difficult to judge. Ethereum’s growth story has been phenomenal, while Bitcoin has a legacy to defend.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
