Ethereum has consistently maintained its position as the world’s second most valuable Cryptocurrency, touching all-time highs especially buoyed by a recent network upgrade (Altair) of its Ethereum platform. Many Crypto-investors and enthusiasts seem to have reached the consensus that ETH is the next big thing after Bitcoin.
Before we dive into the reasons why they think so, it is important to understand how BTC got into its prime position in the Crypto world. First, BTC enjoys the first-mover advantage. Being the first Crypto network with a working Blockchain complete with a BTC token put a lot of distance between BTC and ETH. Since then, BTC has experienced massive gains which have seen it become one of Crypto-investors’ best picks. This year alone, BTC has gone up 300%.
There isn’t an express guarantee that ETH will reach or surpass the value of BTC, but certain strong indicators suggest that ETH could grow to be just as critical, if not more, to the space as BTC.
Predominant Indicators that ETH will go above BTC
1. The recent Altair upgrade is transforming the ETH platform into an even greener, more efficient, and faster version of the beast that ETH 1.0 was. The Ethereum network is already a powerful utility platform on which decentralized permissionless applications and games are already being built at scale. The fact that ETH powers this system is what makes the network so potent.
2. The ETH Blockchain acts as the foundation on which entirely new ecosystems and projects have been built. Part of the reason why the value of ETH continues to climb is that all DeFi systems and applications (dApps)are built on ETH. Because DeFi is poised to change how the world of finance works without the need for middlemen, ETH stands to gain a lot of value as developers flood the ETH Blockchain to build DeFi protocols and dApps. The NFT craze is also happening on the ETH Blockchain, which is what the biggest NFT marketplaces are built with.
3. An extensive developer community. ETH enjoys the largest developer community of any Crypto out there, which is a massive factor as far as taking a project off goes. Approximately 2000 developers contribute to the ETH Blockchain every month, which means that the ecosystem receives constant patches and keeps getting better. This in turn builds trust amongst the user community which in turn raises the value of ETH. This turns into a virtuous cycle as more developers then want to contribute to the robust, growing ETH Blockchain.
4. The Rapid Rise in its value. Together with BTC, ETH has seen a quick climb in its value since its inception. Over the last 12 months, for instance, the value of ETH has gone 900% with 1 ETH trading in the region of $4350 as of this writing. This is an attractive growth curve for any investors who feel like they missed out on the BTC wave to jump on, which continues to further distinguish ETH as one of the more established coins.
In summary, it is technically impossible to predict whether ETH will ever surpass the value of BTC. For the reasons stated above, however, it is no wonder that ETH has emerged as a current Crypto-investor favorite.
TOP 10 CRYPTOCURRENCY
|#||Name||Price||Market Cap||Change||Price Graph (24h)|