In recent events, Bitcoin has reached a new all-time high, inching closer to a price of $70,000 per token. Nevertheless, investors are more excited about another cryptocurrency. Instead of the flagship cryptocurrency Bitcoin, investors are chasing Ethereum, which is the second-biggest cryptocurrency in the world.
Popularly known as Ether for short, Ethereum has been trading at record levels as of late. Now, the prices of Ethereum tokens are around $4,850 a pop. So far, the prices have increased by over 560 percent this year, as opposed to Bitcoin’s rise of around 135 percent.
Crypto investors are patiently waiting for Ethereum to perform even better because of its immense blockchain potential. They are certain that the cryptocurrency will continue to be used as the foundation for countless other NFTs, which is short for non-fungible tokens. Similarly, Ethereum has undoubted potential in offering businesses smart contract technology.
Experts are forecasting that the latest trend of decentralized finance, commonly known as DeFi, will gain more popularity in banking. This could prove to be major news for Ethereum, as well as other blockchains like Solana. In this example, Solana is a popular blockchain used for decentralized finance applications.
Because of its recent price surge, Ethereum now holds a total value of around $575 billion. This is the value of all the coins currently in circulation. This development has helped in narrowing down the gap between Bitcoin and Ethereum, the former of which has a worth of around $1.3 trillion. As of now, these two cryptocurrencies make up a whopping two-thirds of the entire crypto market. That means a large chunk of the $3 trillion crypto market.
Michael Pinsker, the president and founder of the wealth management company, Docupace, spoke about Bitcoin’s drop in market share five years ago. He explained that as of now, the market is observing a new shift in which Bitcoin is no longer making up 75 percent of the complete Crypto market. In his opinion, the percentages are bound to fall even further.
Now, investors are chasing a chance to invest in Ether. This explains why it’s gaining popularity among traders with an account on the Coinbase brokerage. After the closing bell was sounded on Tuesday, Coinbase reported its latest earnings. They explained how 22 percent of their trading volume for the third quarter is dedicated towards Ethereum. This is opposed to the meager 19 percent that’s reserved for Bitcoin.
Within the very next decade, there might even be phenomena of ‘flippening.’ In this process, Ethereum successfully tops Bitcoin. Fortunately, concepts like inflation are improving the state of Ethereum as well as another cryptocurrency.