Ethereum, the second-largest cryptocurrency based on both market value and daily trading volume, has shown tremendous progress over the last year, and it continues to upsurge. Predictors even claim that it might cross Bitcoin in the near future.
Bitcoin has been on a downfall the entire May after China’s strict laws against the crypto market and Tesla Chief Elon Musk’s stance against Bitcoin. This has brought Ethereum into the spotlight as it is the only biggest rival to Bitcoin.
As of June 6th, Bitcoin only rose by 0.48%, while Ethereum shot up by 13.54% last week. In the previous year, Ethereum was traded for around US$231 million in daily spot exchanges. Also, it grew over 900%, when Bitcoin only upsurged by 275%.
There are several reasons why Ethereum has been in the limelight.
1. Investors are looking for new opportunities
In the global pandemic, Bitcoin shot up at a lightning pace when investors withdrew their money from stock exchanges for several companies. They invested in the crypto market when lockdown situations put many industries’ fate into uncertainty. Thus, Bitcoin being the most popular in the crypto market, matured way earlier in its prices and values.
Now, investors are looking for the next best currency, I.e., Ethereum, that they would reap in the future. They are not interested in the already stabilized currency that is experiencing a downfall recently.
2. Acceptance by the Tech Giants
Cryptocurrency has now been accepted by famous companies like Tesla and Square, which have invested millions into it. Therefore, new investors have invaded the crypto market in search of good opportunities. This has lead to a significant benefit to Ethereum’s value too.
3. Ethereum’s better designed than Bitcoin
Ethereum was created looking at Bitcoin’s flaws. Therefore, it is more adaptive to work with everything, from social media networks to entire corporations. Additionally, more applications can work with Ethereum than Bitcoin.
Also, it consumes much less electricity and allows lower transaction costs. It also enables its investors to earn profits from its transactions.
4. Ethereum is less expensive than Bitcoin
For investment, people are moving towards something cheaper but promising too. Bitcoin has been on a downfall the entire May and is the most expensive of all. Therefore, Ethereum has now won the glare being the second-largest cryptocurrency in the market.
Ethereum might out surge Bitcoin one day as its market trend has been promising. Being cheaper, and better designed than the Bitcoin, it wouldn’t be an issue for Ethereum to do so.