Ethereum: Will It Beat Bitcoin? – Cryptonaut

We have finished talking about the Ethereum uptrend. This week, as the cryptocurrency market woke up, Ether reached new ATHs. The last one is today, when it crossed $ 2750. The question that keeps coming back: Will Ethereum Ever Beat Bitcoin?

Before getting to the heart of the matter, we want to clarify an important point: capitalization of two cryptocurrencies. The market cap of BTC is currently $ 988.28 billion, while the market cap of Ether is $ 316.24 billion, or about less than a third of BTC’s market cap.

Despite this gap between the two assets, the idea of ​​Ether toppling cryptocurrency from Satoshi is supported by more than one. Here are two key arguments in support of this position.

Argument 1: the potential of Ethereum

The Ethereum blockchain provides a computer protocol that facilitates the creation of smart contracts, decentralized applications (DApps), decentralized financial applications (DeFi6 and non-fungible tokens, also called NFTs). speculative value, it allows scalability other projects in the crypto industry. For example, Chainlink, one of the flagship decentralized finance initiatives, is already in the top 20 cryptocurrencies.

Ava labs president John Woo told the American newspaper Business Market Insider about this. He ruled:

Ultimately, utility will trump store of value, but I think that is too far. We have to thank Bitcoin for being the first to generate interest. But there are a lot of developments on the air – DeFi and NFT. Ultimately we go beyond the unique functionality of the storage value that bitcoin is and enter a world where there are more use cases, and that always trumps one function, which is an asset or storage cost.… “

Concerns may arise about aspects mentioned in Ethereum: Ether network congestion and transaction fees. This means that other blockchains are in the process of attracting large numbers of customers. Solana, Cardano, Polygon compete quite fiercely with Ethereum. Despite everything, he has a pretty significant advantage.

Argument 2: BTC suffered much more from the liquidity shock than ETH.

This argument is one of three reasons JP Morgan believes Ethereum will outperform Bitcoin. Indeed, when last week the market faced a liquidity problem. It was found that Bitcoin suffered from this problem much more than other cryptocurrencies.

The bank said that:

This liquidity shock originated in the derivatives market, resulting in significant liquidations. The effect was arguably more significant for bitcoin futures, where net long liquidated positions after this event account for 23% of expected open interest; However, 17% of long liquidations during the same period did not go unnoticed.

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