Does Ethereum have the potential to beat Bitcoin?
Ethereum with a market capitalization of $100 million, has been the most sought-after cryptocurrency second only to Bitcoin. Data shows that Bitcoin is turning more into an investment asset than a digital currency. A research conducted found that a third of Bitcoin is currently being held for investment purposes – as an asset – while only a small number of users, as well as small amount of Bitcoin, is being utilized to facilitate transactions.
Ethereum has far more greater potential to grow than Bitcoin. According to the Economist, the 5-year predicted annual growth rate for Ethereum will be 136.5% whereas that of Bitcoin will be just 10%. The study furthered that if Ethereum achieves its goals of technological advances it can possibly cut the market capitalization of the king of cryptocurrencies by 50%. Moreover, in five years’ time, Ethereum is expected to have a price of $868.52 with Bitcoin at $988.74.
Chinese company buys Ethereum
Meitu – a publicly traded Chinese company – has bought around $40 million worth of Bitcoin and Ethereum. With $22 million worth of Ethereum now with the company, this has been cited as the entrance of Ethereum into the corporate world. It is also interesting to note that Meitu opted to buy more of Ethereum than Bitcoin, further fueling the debate of Ethereum beating Bitcoin in the near future.
Ethereum currently has around $21 billion locked in the cryptocurrency in the form of decentralized apps and smart contracts. This staggering sum cannot be touched, which means that it has locked Ethereum’s value for the future. Ethereum can only be expected to rise. The future is decentralized finance and dApps, which Ethereum is well-equipped for.
Ethereum, being one of the original cryptocurrencies has problems of its own but the developers have planned to reduce most of the problems the cryptocurrency is facing with the 2.0 upgrade. Some of the features of the new upgrade include abandoning the proof-of-work system and introducing sharding to increase the cryptocurrency’s efficiency.
In the recent bull-run, as the cryptocurrency picked up, the increased transactions led to increase the Gas prices. However, the development team has taken notice of it and an Ethereum improvement proposal to better manage the fee market of the network is set in motion. The All Core Developers Meeting took place on March 5, 2021 and the EIP-1559 was approved to be implemented in July. However, much of the Ethereum community has been against the proposal.
Will Ethereum ever hit $10k?
Given the uncertainty of the cryptocurrency market, nothing can ever be confirmed. A tweet has the power to crash a cryptocurrency or help it reach new all-time highs. However, in light of the major developments going on in the Ethereum network and with Ethereum’s already-established reputation in the market, $10k can be considered a plausible option.
Moreover, the king and queen of cryptocurrencies have a strong positive correlation. Bitcoin has reached $50k with the expectations of analysts that it can possibly cross the $100k mark. If that happens, then Ethereum is likely to follow suit and if not as high as the king then achieve a price level of somewhere close.