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Bitcoin and Ethereum together make up 60% of the market share in the crypto market, with Ethereum's market capitalization being less than half of Bitcoin’s - at $188 billion against BTC’s $421 billion. As Ethereum attempts to make the shift from Proof-of-Work to Proof-of-Stake, are there chances for the alt-king to flip Bitcoin’s dominance? Let’s find out in today’s article.
Bitcoin, however much it upgrades, is more likely to remain as a medium of exchange and a good store of value. Ethereum, on the other hand, has brought together an ecosystem of layer-1 and layer2 scaling solutions that, in convergence with Ethereum, are bringing scalability, efficiency and a multitude of new use cases to ETH. Ethereum’s use cases are open-ended, i.e., as the blockchain develops and upgrades, it will continue to find new use cases beyond non fungible tokens (NFTs), decentralized finance (DeFi) and decentralized apps (Dapps).
Bitcoin’s energy-intensive nature is a great cause of controversy and limits its prospects for the greener future humankind envisions. Ethereum’s merge upgrade will reduce its energy uptake by 99%. However higher gas fees will continue to be a challenge.
With the upgrade, Ethereum’s total supply will reduce by 90%. Considering fee burns, Ethereum will become deflationary compared to Bitcoin, which will always remain inflationary. However, BTC’s inflation rate is supposed to go down with every halving event.
Ethereum’s issue of high gas fees won’t be solved by the upcoming Merge upgrade scheduled to happen in September. However, users can save fees on Ethereum by directing all their activities on layer-2 solutions, which will then use Ethereum as the base layer for settlement.
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<source: Blockchaincenter.net>
The Flippening Index by Blockchaincenter.net reveal the following developments with regard to ETH flippening BTC:
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<source: Blockchaincenter.net>
Flippening seems a far-fetched idea if we gauge ETH’s worth in terms of current statistics. However, Bitcoin continues to be the ‘digital gold’ of crypto, but Ethereum’s shift is bound to send shockwaves to the Bitcoin ecosystem, for the network will have a larger adoption scale in the Defi and web3 economy.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.