You all read about the Ethereum ETF approval news, right? Did it make you plan an ETH investment? Did you already have an Ethereum investment? The ETH holders were excited to see this news, as they knew that the demand for the crypto and prices were going to get high. Our previous reports had already existed that ETH may undergo a major value hike.
Lastly, when we analyzed the records, the data hints that Ethereum is on a potential journey that may even outperform Bitcoin. Is that true? Does Ethereum have the potential to outshine Bitcoin? Is the ETH ETF approval the sole reason behind it? Are there any other reasons? But, BTC ETF approvals, also happened recently, right? Doesn’t it mean that Bitcoin may also see a huge price surge? Let us talk about all that in this news piece.
Can Ethereum Outperform Bitcoin?
The current predictions suggest that in the upcoming bull market, Ethereum may ascend to overtake Bitcoin in value. A bull market can be defined as a crypto market condition where the value of an asset rises tremendously or continually rises. The bull market is where the majority of investors continue to track and monitor the value of their holdings.
As the price of a particular asset is anticipated to go up during this time this often encourages investment plans. When the predictions of the bull market appear on all major platforms, the demand for that crypto increases. With the expectation that they would be able to get high runs, more people would turn towards the crypto and invest in it.
Following the Ethereum ETH approval, all eyes have been on Ethereum. The ETH holders are tightly holding on to the crypto with the hope of getting huge rewards. The US SEC has provided approval for ETH ETF with which the major players were able to move forward with their proposals. However, there needs to be another ruin of approval before they can get launched in the market. The Ethereum ETF directly holding Ether crypto may get launched in the US anytime.
Ethereum Price Prediction
Ethereum price predictions had already suggested the price of the crypto may skyrocket even before the launch of the Ether ETFs. The current prediction suggests that the ETF may receive an inflow above 4 million US dollars within the first five months.
Ethereum Price = 3791.59 US dollars, at the time of writing this article.
It has a market cap of 455.46 billion US dollars with a 24 H volume of 16.46 billion US dollars.
Possibilities Of Ethereum Outshining Bitcoin
So, why do we think Ethereum has the potential to outperform Bitcoin? Here are some of the reasons that Ethereum may turn this into a reality.
- To start with, Ethereum has only less operating costs for its validators. Therefore, they do not need to often sell Ethereum to make up for their huge costs. At the same time, Bitcoin miners do not have this privilege because it has high operating costs.
- Ethereum has a locked supply where approximately 40% of the crypt is locked as collateral. It is soft locked which plays a significant role in stabilising the price of the crypto. The locked supply decreases its circulating supply, which can lead to a surge in the price of the crypto.
- The token burn mechanism that Ethereum follows needs to be mentioned here. The crypot has implemented EIP-1559 for this mechanism. While Bitcoin has a fixed supply, Ethereum burns about 80% of their transaction fees charged from users. This helps to pull down the total supply of the crypto. The total network is kept running using the remaining 20%.
- Ethereum has opened its possibilities to a wide array of on-chain activities. The blockchain shorts layer 2 solutions, non-fungible tokens (NFTs) on-chain gaming as well as layer 2 solutions on its platform. This may lead to a higher usage of the total network. When there is an increased network usage, more Ether gets burned.
So, what do you think is going to happen when more ETH gets burned? Eventually, the crypto gets scarce which will lead to a hike in its value in the market.
The Bottom Line
Bitcoin is currently the largest cryptocurrency in the world and Ethereum is the second largest. Will we be witnessing where Ethereum tops the list?
The news of SEC approval on Ethereum ETFs did create large-scale ripples in the crypto community. Multiple top-profile investors have turned towards Ethereum shortly after the approval. T
here were predictions that this may result in long-term bullish growth for Ethereum as the demand for the crypto in the market kept on increasing. Following the ETF approval Ethereum price has increased.
What do you think? Will Ethereum outperform Bitcoin? To know more about this, you need to get all the latest updates on the crypto realm. Stay tuned to eBizMBA for all the crypto news.
