The Upcoming EIP-1559 Will Assist Ether In Overtaking Bitcoin
Ahead of Ethereum’s London Hardfork, Dan Morehead, Pantera Capital CEO, has opined that Ether will likely overtake Bitcoin as the leading virtual asset once the upgrade is completed.
Morehead Predicts Ether Overcoming Bitcoin
Morehead told a Reuters global markets discussion panel that Bitcoin has less potential than Ethereum because Ethereum is a newer cryptocurrency compared to Bitcoin. He further noted that the EIP-1559 upgrade would make Ether trade like a fixed asset.
The EIP-1559 upgrade is the most anticipated among the EIPs because it proposes a change in Ethereum’s current fee structure, proposing a minimum amount to Ethereum transactions. Thus, miners will no longer prioritize the highest bidders, as is obtainable in the current system.
This upgrade can make Ether a deflationary asset since one of its purposes is to ensure that users make the lowest bid for each block. Morehead said, “don’t be surprised when you see people store their wealth in Ether than Bitcoin.” one reason for this shift is that it would consume lesser mining energy than Bitcoin.
Morehead also stated that Ethereum’s deployment in decentralized finance (DeFi) applications would make it grow bigger than Bitcoin. However, Morehead remains optimistic about the future of Bitcoin.
The Pantera CEO further forecasted that the king coin would trade for almost $90,000 before the end of this year and rise above $125,000 by this time next year. He also remarked that further mainstream Bitcoin adoption would push the Bitcoin price to almost $750,000.
Ether’s Astonishing Growth
Ether was launched six years, and its current market cap of about $295 billion makes it the second leading cryptocurrency based on market cap. The Ethereum London upgrade is one of the most anticipated upgrades in the history of the blockchain. Once it’s completed, Ethereum would no longer operate as a proof of work protocol but as a proof of stake protocol.
That is, the protocol would no longer rely on mining but on staking. Despite being launched, six years before Ethereum, Bitcoin still relies on the proof of work algorithm. Apart from Morehead, Mike Novogratz, head of Galaxy Digital (a crypto asset management firm), opined two months ago that it is likely that ether would soon replace Bitcoin as the leading cryptocurrency.
Binance Suspends ETH Token Transactions On Its Platform
Binance has revealed that deposits and withdrawals on ETH and ERC-20 tokens will be disabled beginning from august 5, 2021. The news comes ahead of the scheduled Ethereum London Hardfork. However, Binance emphasized that those with ETH in their wallets need not worry as the suspension won’t affect their ETH transactions unless they want to make a withdrawal.
Despite declining by over 40% from its May 2021 peak price, Ether has performed better than Bitcoin so far this year, surging from more than 270% in its year-to-date. As of this writing, Ether trades around the $2,400 price range. Conversely, Bitcoin’s year-to-date increase hasn’t been that significant; it has only surged by almost 45%. It started the year around the $30,000 price levels and now trades at almost $39,000.
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