empty
08.07.2021 09:28 AM
Ethereum is aiming for leadership: why it can overtake bitcoin

This image is no longer relevant

According to The Goldman Sachs' analysts, ETH has a high potential for growth and use. For these reasons, it can take a dominant position as a means of saving, as well as overtake its main competitor BTC by market capitalization.

The main trigger for the future leadership of Ethereum should be its key use case. Currently, the altcoin blockchain is the most popular platform for creating decentralized software – smart contracts.

Last month, Bloomberg analysts already predicted that the world's second-largest cryptocurrency will surpass the first one in the market capitalization rating.

They believe that the growth of the value of the altcoin network is inevitable, since it has long outgrown the standard role of a "value store" for tokens. From an ordinary digital asset, ETH has turned into an entire ecosystem.

According to information provided by the CoinGecko portal, on July 8, the value of the bitcoin network is $626 billion, while the market capitalization of ETH exceeds $264 billion.

According to the forecasts of the head of the Celsius Network platform, which provides cryptocurrency lending services, the change of the cryptolider should occur in 2022 or 2023.

CEO Alex Mashinsky supports his opinion with convincing facts. Today, the Celsius Network manages customer accounts worth $17 billion. Interestingly, the No. 1 coin in dollar terms for the total assets of the platform is not bitcoin, but ETH.

Large-scale plans for its development can also push Ethereum to new heights. Recall that earlier, the launch of the London update was already announced in the main, not the test network of the altcoin. This can have a positive impact on the price of the coin.

The transition to the 2.0 protocol will reduce the number of tokens in circulation, as well as completely eliminate mining, which will make ETH an eco-friendly asset (unlike bitcoin). This should also increase the investment attractiveness of the altcoin.

In addition, analysts pay attention to the fact that recently Ethereum has been strengthening despite the uncertainty of the entire crypto industry, and its market share is steadily growing.

On June 22, when the last collapse of the cryptomarket occurred, the value of ETH collapsed to $1.7 thousand. However, after that, it began to move rapidly upwards. Already on July 5, the asset price jumped to $2.39 thousand.

Currently (at the time of preparation of the material), the coin is trading at the $2.24 thousand mark. Thus, for two and a half weeks, its increase was more than 30%.

This image is no longer relevant

It is also interesting that since the end of last month, the dominance of the current crypto king has fallen from 47% to 44.5. Meanwhile, the share of Ethereum increased from 16% to 18.5%. This indicates that some of the funds are transferred from BTC to ETH.

Аlena Ivannitskaya,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Q1 2025: Markets witness biggest rate drop since 2022

S&P, Nasdaq post worst month since December 2022 Biggest quarterly interest rate drop: S&P since Q3 2022, Nasdaq Q2 2022 Trump tariff uncertainty weighs on markets in Q1 Trump

Thomas Frank 12:03 2025-04-01 UTC+2

US Market News Digest for April 1

US stock indices closed the trading session with mixed results: the S&P 500 rose by 0.55%, while the Nasdaq 100 lost 0.14%. The reason for this uncertainty is the potential

Ekaterina Kiseleva 11:37 2025-04-01 UTC+2

Gold shines in crisis: best quarter since 1986 amid global turmoil

The Nikkei drops 4% and Nasdaq futures fall 1.4%. Trump signals US tariffs will target all countries. Gold posts its best quarter since 1986, while the dollar heads

12:51 2025-03-31 UTC+2

US Market News Digest for March 31

The US market kicked off the week with a broad-based sell-off, driven by rising talk of retaliatory trade tariffs and deteriorating consumer confidence. Investors are bailing out of stocks

Irina Maksimova 12:16 2025-03-31 UTC+2

Gold: The New Crisis King? Best Quarter Since 1986 Amid Global Turmoil

Nikkei Falls 4%, Nasdaq Futures Fall 1.4% Trump Says U.S. Tariffs Will Apply to Every Country Gold Has Best Quarter Since 1986 Dollar Heading for Worst First Quarter Since Global

Thomas Frank 09:35 2025-03-31 UTC+2

Trump pulls strings — stock market sinks in response

Auto stocks tumble after Trump's tariff strike. Advanced Micro Devices slips. Jobless claims rise to 224,000. Dollar strengthens against Canadian dollar, Mexican peso. S&P 500 -0.33%, Nasdaq -0.53%, Dow -0.37%

11:46 2025-03-28 UTC+2

US Market News Digest for March 28

The White House imposed 25% tariffs on automobiles and parts, triggering a sell-off in the auto manufacturing sector and broad declines in major stock indices. The Dow Jones, S&P

Irina Maksimova 11:24 2025-03-28 UTC+2

Trump Pulls Strings, Stock Market Reacts With Crash

Auto Stocks Fall After Trump's Latest Tariff Blow Advanced Micro Devices Falls After Brokerage Downgrade Weekly Jobless Claims Total 224,000 Dollar Rises Against Canadian Dollar, Mexican Peso S&P 500 -0.33%

Thomas Frank 07:36 2025-03-28 UTC+2

New Tariffs on Cars: How They Will Hit the Stock Market and Automakers

The U.S. stock market faced pressure after 25% tariffs on imported cars were announced. President Donald Trump signed an executive order introducing new duties on foreign-manufactured automobiles starting this April

Ekaterina Kiseleva 23:44 2025-03-27 UTC+2

Stakes rise: GameStop bets on crypto, Trump on tariffs

President Donald Trump is reportedly preparing to announce new auto tariffs in the near future. Dollar Tree shares rose following the sale of its Family Dollar business. GameStop stock surged

11:15 2025-03-27 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.