There has been an increasing trend in a shift by investors choosing Ethereum over Bitcoin as the battle for crypto dominance intensifies in the crypto space. Ether has made a profit compared to Bitcoin in terms of market capitalization and investors are taking notice.
This year alone, the battle between these two assets has escalated with Bitcoin increasing three times in value from January to the May peak, while Ehereum soared x5 in the same period.
The flippening has already happened
According to Alex Mashinsky, CEO of Celcius Network, the acquisition of Ethereum is looming as most investors on their platform now indicate that they have more Ethereum in terms of dollar volume, anticipating that the asset # 2 advantage is very rewarding in compared to Bitcoin.
“The change has already happened, Ethereum has already surpassed bitcoin in dollar terms of the total holdings of the Celcius Community and I think the market in general will follow. In the next year or two, we will see that change happen in the market in general as well, ”he said.
There are more people in the world competing for performance
The crypto asset management company that manages around $ 17 billion in customer deposits has seen an increase in the number of Ethereum hodlers invested by Bitcoin hodlers in the last two months. His boss believes that even though Ethereum's market capitalization is not half that of Bitcoin, he is still ready to take over soon given his difference in user value outlook.
“I think the use case for bitcoin is still valuable. Ethereum's use case is throughput, and throughput simply has a broader user base; there are more people in the world competing for performance; People in the world say that I am afraid of my fiat currency, I am simply going to move something of value from my fiat to bitcoin. so I think over time you will see a wider adoption of Ethereum than bitcoin, but obviously both are exceptional applications and exceptional blockchains and we will see a wider adoption of both, it's just that one will overtake the other. " added.
At the time of writing, Bitcoin holds the lead with a market capitalization of $ 755 billion followed closely by Ethereum at $ 270 billion, giving Ethereum a potential of 39.1%.
Earlier last month, a Bloomberg report indicated that Ethereum maintained a higher bull market trajectory since the May crash. Concerns about Bitcoin's power consumption and recent crackdowns on Bitcoin mining in various parts of the world, such as China, also appear to have cast a positive light on Ethereum.
Emphasizing the benefits of diversification, especially in an asset class as fledgling as cryptocurrencies, the trend that seems enduring is Ethereum gaining market share versus Bitcoin: Ethereum faces competition from other crypto platforms and smart contracts, but the No. 2 Crypto has won the adoption race as the path to digitizing money and finance, ”the report says.