Ethereum (ETH) is expected to surpass bitcoin in decentralized finance due to the popularity of layer-1 tokens and increasing institutional interest in DeFi.
This could put a lot of pressure on bitcoin’s “digital gold” if the adoption of ETH continues.
Just recently, there was a more than $4,600 price hike as CME Group plans to release micro ether futures.
Facebook’s upcoming name change to Meta that gave a massive boost to ether. This is because many metaverse relies on ETH platforms.
However, Bitcoin is still unique as it serves as a digital gold. This means it doesn’t have any competition with other cryptocurrency in the market.
According to experts, investors’ aim is to focus on the environmental, social and governance issues that resulted in the shift from using the energy-intensive bitcoin blockchain to the Ethereum blockchain that is more energy efficient with Ethereum 2.0.
👀 Ethereum Expected to Surpass Bitcoin
A blockchain and crypto-asset analyst for Ark Invest also tweeted that Ethereum’s market capitalization would surpass bitcoin.
Moreover, in terms of loans, BTC loans were 32.4% down from 42.3%.
Meanwhile, ETH loans significantly increased to 32% up from 27.9% in Q2. This is the very first time ETH loans gain more than 30%.
However, Ethereum still has a lot of competition in the market. This includes Binance Smart Chain (BSC), Polkadot (DOT), Cardano (ADA), Terra (LUNA) and Solana (SOL).
The Q3 states the growth of layer-1 protocols in terms of technology as well as community widening. Layer-1s strongly vary based on transaction speed and security, but its excellent rewards mechanism leads to the decrease of Ethereum’s market share.
As an example, In August, Avalanche’s $180 million liquidity mining reward program brought positive changes to the Avalanche public blockchain.
Furthermore, Ethereum’s $4,600 asset’s price had struck down to 4,517.75 as of 5 pm ET on Thursday, according to CoinGecko.
But according to Mikkel Morch, executive director at crypto hedge fund ARK36, Ethereum has now surpassed bitcoin for about five times when it comes to yearly returns.
Well, despite having many competitions in the market with various layer-1 blockchains that are popular for ultra fast transaction speeds and excellent security protocols.
Analysts’ still believe that ethereum will increase the digits on the price in the following months.