Ethereum Could Overtake Bitcoin, Messari Analyst Says
What Happened: Ryan Watkins, an analyst at cryptocurrency research firm Messari, believes Ethereum (CRYPTO: ETH) could surpass Bitcoin (CRYPTO: BTC) to become the most valuable cryptocurrency.
In a recent interview with Fintech Today, Watkins said that the shift towards Ethereum 2.0 would bring about some changes in the coin’s monetary policy, which could lead to Ether (ETH) taking over as the leading cryptocurrency in the future.
Why It Matters: According to Watkins, Bitcoin’s unique selling point as a “store of value” asset is the fact that its monetary policy is very predictable.
“I think that the shift to Ethereum 2.0 and proof of stake, which is kind of like a new way of securing the Ethereum blockchain….Ethereum may actually be more secure than Bitcoin”, he said.
Watkins pointed out that the new monetary policy brought about by Ethereum 2.0 would lead to ETH being a deflationary asset, as more of the token’s supply is burned every year.
While this would undoubtedly lead to a higher value proposition for Ethereum, the Messari analyst highlighted how the rise in DeFi (decentralized finance) applications being built on the Ethereum has further propelled the blockchain’s utility in the crypto space.
“The way Ethereum becomes money is not actually by being adopted by countries as a currency; the way it becomes money is actually by building his own economy,” explained Watkins while stating that the GDP of Ethereum is actually rivaling many large countries in the world.
Data from Blockchain Center shows that Ethereum has already surpassed Bitcoin in terms of node count, transaction count, and total transaction fees. However, in terms of market cap, Ethereum’s $200 billion is still a ways off from Bitcoin’s market cap of $1 trillion.
Price Action: Bitcoin was trading at $59,063 with a slight loss of 0.67% in the past twenty-four hours.
Ethereum was trading at $1,826, showing 0.15% growth in twenty-four hours and a 3.84% gain over the past week.
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Surfing The Crypto Waves - Ethereum: A Path After The Correction (Cryptocurrency:ETH-USD)
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Ethereum Bullish Retest Offers “Once-In-A-Lifetime Opportunity”
Ethereum has drawn many comparisons with early Bitcoin, and is expected to grow in value substantially and make for life-changing wealth. Those that missed out on the initial run up are in luck, however, as one crypto analyst says that the recent bullish retest presents a “once-in-a-lifetime opportunity.”
Here’s an in-depth look at the bullish retest the analyst is referencing, and what that ultimately could mean for the second ranked cryptocurrency behind Bitcoin for the long run.
Ethereum Bullish Retest Completes: What This Means For The Top Altcoin
Ethereum has been arguably more bullish than Bitcoin itself, driving a higher ROI but still nowhere near former highs on the two crypto asset’s ratio.
Related Reading | Economist: Ethereum Looks “Bullish” After Withstanding “Macro Beating”
Eventually, Ethereum should catch up to Bitcoin on the ETHBTC trading pair, causing the top ranked altcoin to outpace the first ever cryptocurrency in terms of performance.
That time could be coming, as Ethereum just completed an extremely bullish retest of its former all-time high, and held it with extreme strength. The showing by bulls withstanding a “macro beating” could provide the confidence to fuel another leg up, taking Ethereum beyond prices of $2K per coin.
This retest could be a once-in-a-lifetime opportunity to get in before it is too late | Source: ETHUSD on TradingView.com
Crypto Analyst Claims Those Who Missed Out Initially Get Another Chance
According to one crypto analyst, the bullish retest is another chance for those who missed out on the initial rally. They claim this is a “once-in-a-lifetime opportunity” for latecomers, although technically it is the second chance after missing the initial run up.
Cryptocurrencies move quickly and violently, especially when a trading range is left behind. Ethereum has been trading between $1,400 and $100 for roughly four years, and just retested the former resistance as support, and held. The important resistance flip into support is now confirmed, and typically markets then move up in a strong way.
Related Reading | Alt Season 2.0: Analyst Claims It’s “Showtime” For Ethereum
Ethereum is the second ranked cryptocurrency by market cap, only behind Bitcoin, and recently started the phases of the ETH 2.0 upgrade that should address scalability issues seen with the network recently.
Regardless of the challenges, activity on Ethereum is so high, ETH reserves on exchanges so low, and demand for Ether for gas so high, the price per coin will continue to skyrocket for the foreseeable future.
The retest of former resistance turned support, could also be the factor that finally lets the altcoin outperform Bitcoin for a period of time, bringing the ratio back toward the highs of early 2018.
Are you going to get in on this once-in-a-lifetime opportunity the analyst suggests is here?
Featured image from Deposit Photos, Charts from TradingView.com