Why is Ethereum Dominating Bitcoin?
Ethereum has been always on our minds whenever we talk about cryptocurrencies. Despite its popularity, it comes only second to Bitcoin in terms of popularity. However, people do not seem to pay as much attention to this crypto as they do to its counterparts.
Do you know about middle child syndrome?
This term is used to describe this type of situation when the middle child receives less attention and the parents neglect all their achievements.
Ether is undoubtedly the middle child of the crypto family, if crypto is like a big family. Why? Among the top cryptocurrencies, Bitcoin and Ripple, Ethereum had a nearly 750% increase between 2020 and 2021. Even so, it has garnered very little attention.
It is popularly referred to as a blockchain cryptocurrency or an Ethereum blockchain because it runs on a blockchain platform. Due to the excess money flowing and investments in cryptocurrencies, this remarkable jump in value was analyzed by data analysts.
The Ethereum 2.0 update has prompted a second run!
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Why is Ethereum going up?
May 2021 will be remembered as the month when Ethereum broke all records and set a benchmark of around $3000, making history in the history of cryptocurrency. It continued to rise as some cryptocurrency analysts predicted. With $4000, it set a new record.
It hit another 10% spike in its exchange value after some time, which is a major increase since May.
But, what are the reasons behind its hike?
Just read it on!
One of the major factors behind its hike is that Ethereum 2.0 is all set to launch at the end of 2022. It will make the transaction faster, lower charges, etc. This is fueling the rise in Ethereum prices in the crypto market.
DeFi (Decentralized Finance) has become increasingly popular, which is partly to blame for the price rise of Ethereum.DeFi (Decentralized Finance) has become increasingly popular, which is partly to blame for the price rise of Ethereum. Most activities, including DeFi take place on Ethereum’s blockchain network, which hosts a lot of DeFi projects. The potential growth of Ethereum is heavily influenced by this.
At the time of writing this post, Ethereum stood at 1,23,815.14INR.
One of the main reasons for its rise is Ethereum's technological advancements over other cryptocurrencies like Bitcoin and Ripple.
- First of all, Ethereum acts more like a platform token than a coin.
- Additionally, it is far superior to bitcoin on the parameters of bitcoin. Where bitcoin takes fifteen minutes to complete a transaction, Ethereum can do it in just a couple of seconds.
- Last but not least… it has an unlimited supply, unlike bitcoin, which has a limit of 21 million coins. Bitcoin and other altcoins may eventually be replaced by Ethereum.
Conclusion
There is no doubt that Ethereum is the most popular and largest cryptocurrency ecosystem in the world today. In addition, institutional investors are beginning to acquire Ethereum for their own portfolios as the number of people using DeFi services grows rapidly. From Etherum’s point of view, it’s better the sooner the much-awaited 2.0 version gets out, the better. The number of developers and the market value of Ethereum exceed those of its competitors at present. Despite Ethereum’s challenges, it appears to have a very promising future.
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