28.11.2021

Why Ethereum can bypass Bitcoin and take the place of the first cryptocurrency?

There are more and more opinions about the future superiority of Ethereum over Bitcoin . The founder and CEO of the financial company deVere Group is confident that the leaders of the cryptocurrency market will swap places.

According to Nigel Green, the ETH rate will grow at a faster pace than Bitcoin. And in a few years, Ethereum will become the first cryptocurrency in terms of capitalization.

“Ethereum is outperforming Bitcoin’s growth, and this trend can be expected to continue for the rest of 2021. In fact, in the first half of this year, ether has surpassed any other major assets , ”Nigel Green said.

Since the beginning of the year, the ETH rate has tripled, while Bitcoin has added “only” 55%. There are several prerequisites for the continued growth of the second cryptocurrency. Ethereum remains the most popular platform for developers of smart contracts and dApps , the potential of the network is still not fully revealed. Ethereum developers continue to work on the launch of ETH 2.0 with a staking mechanism , which should significantly speed up network performance.

“This all indicates that ETH will surpass BTC in terms of capitalization. Most likely for five years now. And it looks inevitable , ”said the CEO of deVere Group.

At the same time, Green has a positive view of bitcoin as well. He believes that by the end of the year, BTC may well return to $ 65,000, and possibly even exceed this mark.

Late last year, Greene revealed that he sold half of his BTC holdings for Christmas. Then the BTC rate reached $ 25,000. At that time, the investor was in a hurry: in mid-April, the rate of the first cryptocurrency reached $ 65,000, and even now, after the correction, the coin is trading at about $ 47,000.

Bitcoin growth may slow down due to the popularization of Ethereum

Mike McGlone, senior commodities strategist at Bloomberg Intelligence, believes Ethereum may be the main constraint on Bitcoin’s growth. He stated this in an interview with the YouTube channel The Deep Dive.

Previously, he repeatedly  predicted that the digital gold rate would reach the $ 100,000 mark . But, according to the expert, entry into the mainstream of the second largest cryptocurrency in terms of capitalization can become an obstacle to growth.

People are beginning to understand that Ethereum is “the building block for all financial technology,  DeFi  and infrastructure in a world that is going digital,” McGlone noted.

The expert named non-fungible tokens (NFT) as another powerful support for the Ethereum price . Such assets are becoming extremely popular and are mostly issued on the ETH blockchain .

At the same time, McGlone called the forecast of the former hedge fund manager Goldman Sachs and CEO of Real Vision TV Raul Pal about the growth of Ethereum to $ 20,000 overstated.

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