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Is Ethereum at the Forefront of the Crypto Market?

Ethereum on bitcoin
Image Credit: Kabiru Yusuf

In recent times, the word on the crypto market has been that Ethereum might surpass Bitcoin as the world’s leading coin. Popular names like Goldman Sachs have reported that Ethereum could overtake Bitcoin as the dominant cryptocurrency. Other popular names have also seconded this notion, with Todd Morley, a crypto and blockchain investor, stating that he thinks Ethereum has “much higher utility” than bitcoin, and is “where the action is.” 

Analysts have gone further to state that ETH could rise by 40% against BTC. This analogy came to be after the June 27th, 2021 rock-bottom of 0.0552 BTC, by 21.28%. It revealed that most traders have chosen to sell their Bitcoin assets to seek opportunities in the Ethereum market recently. Following this analogy, Ethereum has already surged by more than 160% against Bitcoin. 

Owing to imminent scantiness in Ethereum and price stability in Bitcoin, investors and traders see huge prospects in the Ethereum market. Ethereum’s poor supply in dissemination (due to its price increase) against growing requests would make it more appreciated than it is today. Currently, Ether has a market cap of $233.77 billion. The decentralized finance market, which is mostly built in line with Ethereum, saw an amassed profit of 9% on July 4th, 2021. The total market value of Decentralized Finance market coins is $75.7 billion, as seen on CoinGecko data. 

While the price of ETH is still some substantial reach from BTC, the distance is reducing and Ethereum’s hold is jammed with the kind of supply Bitcoin did not have at the same point in time. Analyst Simon Peters believes that Ethereum has what it takes to become the dominant store of value, however, it will take a few years. Bitcoin and Ethereum have often run on similar interests that elucidate the confused faces of many traders across the world.

Lately, Ethereum has been drifting into another path, working on building considerable development away from Bitcoin’s pace. Simon Peters added that it is also key to remember that Bitcoin had a six-year head start. He said, “If you look at where the market cap of Bitcoin was six years ago it was approximately $5 billion, whereas Ethereum at a similar point in terms of its life cycle has a market cap of $300billion.” 

In retrospect, investors and traders will be looking at which coin has the most room for growth and potential. Ethereum is making moves to address its financial scheme with the forthcoming release of the EIP 1559 Ethereum Improvement Proposal). According to Abdelhamid Bakhta, one of the six authors of the EIP 1559, he said the main purpose of this development is to achieve block elasticity which would mean that the capacity of the platform is doubled. 

Several analysts claimed Ethereum’s next stop would be around $3,000 and once that mark is hit, the mark of $5,000 would be within reasonable reach over the coming months. Popular opinion shows that most analysts believe that Ethereum will overtake Bitcoin eventually, however, there are still words of caution. Susannah Streeter, senior investment and market analyst was quick to state that although Ethereum has made great strides in recent times, its future direction is far from certain. She went further to say that traders should be careful about getting caught up with the news surrounding Ethereum, as it is still a bet.

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