Against the backdrop of Bitcoin, Ethereum, the second-largest cryptocurrency by market capitalization, has shown much better profitability since the beginning of this year.
The coin has risen 320 percent over the past months, while the value of BTC has increased by only 54 percent. In early August, the growth rate of the ETH price significantly accelerated, the reason for which was the successful integration of the London hard fork. According to Mike McGlone, a leading commodities analyst at Bloomberg, Bitcoin will soon catch up on the aforementioned indicators of its closest competitor.
In this case, it may well reach the $ 100 thousand mark by the beginning of 2022 .
Today Bitcoin is trading at $ 46,096. This is 0.9 percent higher than a day ago. At the same time, the rest of the coins also look good against the background of positive in the industry and show growth.
Bitcoin Hourly Chart
What will happen to the price of Bitcoin?
McGlone admits the likelihood of BTC reaching ETH’s gains in price. Here is his quote, in which the expert shares his attitude to what is happening. The replica is provided by Cointelegraph.
If Bitcoin can catch up with Ethereum’s profitability, the number one cryptocurrency will rise to $ 100K.
That is, BTC for 100 thousand dollars is not something mythical and unattainable. To do this, the first cryptocurrency just needs to give out the same growth rates that ETH has already shown.
ETH growth on a 1-day chart
The analyst did not identify specific reasons why the coin will go up sharply, but some conclusions can be drawn from his recent market report. Here is a quote from McGlone on this matter.
The Bloomberg Galaxy Crypto Index (BGCI) [Bloomberg Major Crypto Index – Editor’s Note] is about 80 percent fueled by perceptions of BTC as a global digital reserve asset. The digitalization of fintech and the monetary system also plays an important role in this process.
It is worth noting that the Bitcoin Dominance Index – that is, the share of the main cryptocurrency in the total market capitalization – decreased from 73 to 47.17 percent between December and August. Most of the capital flowed into Ethereum, which led to a rapid rise in the price of ETH. The share of altcoin in capitalization increased from 10.06 to 20.05 percent over the same period. McGlone himself believes that in the next couple of years, ETH will most likely surpass Bitcoin in capitalization and become the main cryptocurrency industry.
Falling BTC dominance index amid growing share of ETH in the total cryptocurrency market capitalization
Aside from the boom in NFT and the decentralized finance niche, even millionaires provide additional advertising for Ethereum. Among them was the famous Canadian investor Kevin O’Leary, long known for his role in the TV show «Shark Tank».
Below is a short talk by O’Leary on a video from the Cameo service, where users can pay celebrities to voice certain thoughts at their will.
Mr. Wonderful talks about #ethereum #EIP1559 and #EIP3675 (the merge) and Ethereum becoming cashflow positive
– Taras.eth | Taras Bobrovytsky (@TarasBob) August 9, 2021
Here is Decrypt’s translation of the millionaire’s words.
If Bitcoin can be considered a «hard currency» due to the limitation of the maximum number of coins to 21 million, then Ethereum now also deserves this title. This is «ultra-hard money» since ETH now does not even have a permanent maximum cap on the number of tokens.
Here O’Leary refers to the same London hard fork that introduced the EIP-1559 update. One of its key features is the gradual burning of ETH in each block. According to the Etherchain service, over 26,000 ETH have been burned to date .
The number of ETH burned so far
A little more interesting information – over the past day, an average of 3.09 ETH per minute was burned. At the same time, the emission of coins was 6.2 ETH per minute . In theory, EIP-1559 could lead to a gradual decrease in the maximum amount of ETH if the rate of coin burning increases in the future. It was about a gradual reduction in the supply of an asset with a growing demand for it that O’Leary spoke of.
ETH burning rates
We checked the actual data: yesterday, the Eth network recorded the largest-scale burning of tokens within one block. In block 13000072, 49.74 ETH was destroyed, which was the result of a serious load on the network and high fees.
Record volume of combustion in the ETH network
The rapid recovery of the crypto market after the spring correction should be taken as very positive news for the bulls: nevertheless, the high activity of buyers gives a green light to the continuation of the current bullish cycle. The safest investments in the industry are still Bitcoin and Ethereum, and the more risky projects are coins with a low market capitalization, that is, the product of the rate by the volume of cryptocurrency in circulation. Moreover, the lower the capitalization, the easier it is to influence the value of a cryptoasset.
We believe that what is happening on the market today clearly hints at the continued growth of the cryptocurrency market in the coming months. It is likely that Bitcoin will indeed have the strength to set a new price record. When he is beaten, time will tell.
