The Ethereum vs. Bitcoin competition started right after the creation of Ethereum. Now, proponents of both coins debate for supremacy of one coin over the other. It is a fact that so far, Bitcoin has remained superior because it has always remained untouched in terms of market capitalization. Nevertheless, it is irrefutable that with the help of an improved ecosystem, frequent updates and support from various institutes have pushed Ethereum closer to Bitcoin.
The clouds of uncertainty that covered the market for a couple of months finally shed off in August. Both Bitcoin and Ethereum displayed some good performance this month, and their returns projected positive values of 15 and 30 percent, respectively.
Although Bitcoin’s price showed a solid recovery, its dominance in the market witnessed a fall in this fortnight. This weakness has forced the traders to speculate that Ethereum is challenging Bitcoin, and its dominance may be over within a couple of years.
Ethereum Challenging Bitcoin?
A report of Bloomberg has stated that Ethereum is hassling with Bitcoin to take dominance. This proposition was laid on the grounds of the fact that the one-month forward contract of Ethereum traded at an 8.3% premium, while in the case of Bitcoin, the value was 6.5% only. This comparison indicated the possibility that Ethereum is being adopted by institutions, and its bullishness is getting higher. In addition, Open Interest in Ethereum contracts mounted to 0.3 as compared to the previous value of 0.1. Hence it can be perceived that these are the reasons why it has gained institutional attention recently.
Since the last three months, the AUM of Ethereum rose 72% to reach 13.8 billion dollars while Bitcoin only saw a rise of 52 percent, and the value stands at 38.1 billion dollars. But wait, this is not the end yet. Bitcoin’s market share was also evaluated. It fell to 69.6 percent, which was 72 percent in July this year.
Having an eye on the market cap, it cannot be denied that Bitcoin is still the king of the digital currency market, Ethereum’s advancements cannot be neglected. Ethereum is probably surfing high on the waves of the network, which saw an upgrade in London. It is being expected that in the upcoming months, Ethereum will become deflationary. This will further light up the competition, and Ethereum will fetch more attention from institutions to rattle Bitcoin.
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