Home
News
- Ethereum has been soaring impressively to take the dominance of Bitcoin
- Some use cases of Ethereum has tied the blockchain network below Bitcoin
- The price and trade volume of Ethereum has been observed performing better than that of Bitcoin
- Following the volatility in the price of Bitcoin, institutional investors are observed shifting their funds to Ethereum
- With Proof-of-Stake, Ethereum is greener than Bitcoin that uses Proof-of-Work
Ethereum is the second-largest cryptocurrency in terms of market capitalization as per CoinMarketCap. Currently, the total market capitalization of the currency is near $293.30. Observing the data from CoinMarketCap, it is observed that since the beginning of this year, the coin’s market cap has continued to achieve new highs.
Recently Bloomberg has released its monthly Crypto Outlook. In the report, Bloomberg claimed that Ethereum is on its path to help it achieve BTC in terms of market capitalization.
Will Ethereum be able to surpass Bitcoin?
According to the report shared by Bloomberg, Ethereum is running to surpass Bitcoin. Still, there are a few of ETH’s use cases that tie the coin below Bitcoin. Such hurdles for the Ethereum blockchain also include the DeFi industry, as it is a cornerstone for the sector. Moreover, the ETH coin plays a significant role in the ecosystem.
Although there are hurdles, Bloomberg believes that Ether is continuing to eat Bitcoin’s market cap at a steady pace. Moreover, the news agency also observed that Ethereum coins have already gained half of BTC’s total capitalization.
Ethereum’s trade volume skyrocketing
According to Bloomberg, Ethereum foundation and use case are more substantial than Bitcoin. Indeed, Bitcoin’s macro attributes have one significant point: its nature as the store of value. To advance Ethereum, the news agency took its volume as the leading indicator.
Following Ether’s trade volume chart of 1 year, it was observed that the coin had attained the 50% mark vs. Bitcoin in terms of Market capitalization. Moreover, Ether’s 10-day average trading volume has also been observed to be doubled by 80% of BTC’s from the beginning of this year.
Recent ETH price dip removed speculations
According to data from CoinMarketCap, the price of Ethereum was near $700 earlier this year. However, 2021 remained a great year for the price of the coins. From such a low price level, the currency surged to achieve new highs. Last month just before the crypto market crash, the token crossed the price level of $4100 for the first time ever.
However, the crypto market crash also impacted the Ethereum network. Hence, Ethereum’s price fell by more than 50% at the time of the sharpest dip. However, Bloomberg has deemed that from a price level of $2,000 to $4,000 is a sweet spot. Hence, Ethereum will consolidate in the sweet region for a while.
Moreover, the Bloomberg team claimed that the recent market crash, which pushed the price below $2k, has eliminated the majority of speculation surrounding the coin. Notably, since the Ethereum network is the go-to platform for crypto and decentralized finance (DeFi), its current price is considered a discount.
Institutions are investing in Ether
Since the beginning of this year, it is observed that institutional investors are showing interest in the world’s second most popular cryptocurrency. According to analysts in the cryptosphere, it is observed that few investors of the flagship cryptocurrency are selling-off to invest in Ethereum. Notably, the interest in investing in Ethereum has been proven by following the deposit contract of Ethereum 2.0, surpassing five million ETH coins.
Notably, the adoption of ETH by institutional investors has cleared the gap between ETH and BTC by more than $462 billion. Indeed, such a high jump in Ethereum’s price and capitalization is a remarkable achievement.
Bitcoin volatility is helping the ETH network grow
Amid the global COVID-19 pandemic, BTC has been observed continuing its bullish rally. The market had seen several minor corrections in the price of the asset. Still, it surged tremendously. Following its rally in April 2021, Bitcoin achieved its all-time high price level by crossing $64k.
Read More: BITCOIN VOLATILITY HAS LED TO TENSION AMONG INVESTING CFO’S\
Read More: Bitcoin Volatility Heading towards Saturation
However, due to several regulatory scrutinies around the world, the flagship cryptocurrency faced a heavy sell-off. Still, the crash helped Ethereum gain more traction. Following the scenario, investors began to find other alternatives to store their funds and protect them from volatility.
Is ETH a worthy asset for investors?
Although several investors turned to Ethereum, the coin has also faced a sharp dip in value. Indeed, the currency is still suffering to cross the price level of $3k. And following the performance, several are questioning whether they should include the coin in their crypto portfolio.
Luis Garcia, the director of the Master in Financial Risks at ICADE Business School, explained that ETH is not just a crypto asset. Garcia highlighted that Ethereum is entirely different from Bitcoin and considered it as a tech hub with enormous potential.
Read More: Crypto Analyst Estimates Ethereum Price To Surge 300% To Reach $10K By Year-End
Read More: Ethereum Price Analysis: ETH Token Hits A Life-Time High Of $3200, Worth More Than Disney
Luis stated that ETH helps programmers create several dApps or decentralized applications. Furthermore, he explained that if BTC is a standard wheel, ETH can be considered as the rubber wheel.
Proof-of-Stake shields the Ether blockchain
In the recent crypto market crash, one of the main reasons includes the change in opinion of Elon Musk. The CEO of Tesla and SpaceX remained an immense advocate of cryptocurrencies like Bitcoin and Dogecoin. However, suddenly, Musk claimed that he could not support a currency that is impacting our climate.
Bitcoin mining uses the Proof-of-Work (PoW) consensus algorithm, which uses heavy power to mine one block. Following the power consumption, many globally have shown concerns regarding the mining impact on our environment.
Read More: Bitcoin’s Proof-of-Work or Ethereum’s Proof-of-Stake
Read More: Proof Of Stake And Ethereum 2.0 Under New Beacon Chain Blockchain
However, Ethereum uses Proof-of-Stake (PoS) consensus algorithm for mining ETH coins. According to experts in the cryptosphere, the PoS consensus is considered the green mining cryptosystem process.
Moreover, the PoS consensus helps reduce the consumption of power by 99.5%. Hence, the Ethereum has been considered as the green one, compared to the Bitcoin blockchain.
Can ETH truly be able to take BTC’s position?
Following the scenario, it seems that Ethereum has undoubtedly potential more than Bitcoin. Although the blockchain has the potential, it will need time to grab the top position in the cryptosphere. Moreover, the outside validation of BTC shows that the leading blockchain is firm to the ground, which makes the battle more difficult for Ethereum.
Ethereum’s growth is phenomenal
Ultimately, it is highly challenging to judge whether ETH and BTC will receive equal appreciation in the industry. Still, Ethereum’s growing pace makes the story of the world’s second most popular blockchain a phenomenal one.
