Ethereum had been in the spotlight for quite some time, even though the crypto throne is still held by Bitcoin. But there is a study on both the leading digital currencies which has been prepared by experts and analysts of Australian Universities. In their report, the analysts have concluded that Bitcoin’s throne will be snatched by Ethereum. This is because Ethereum is proving itself to be a better store of value against the new “gold” i.e. Bitcoin.
According to the experts, Ethereum’s performance has been further boosted enormously because of its new upgrade “EIP-1559”.
The first change witnessed because of the upgrade could be seen in Ethereum’s annual supply. The annual supply of Ethereum has increased by at least 0.98%, which has now become almost half the size of Bitcoin’s increased annual supply of 1.99%. Considering that investors prefer Bitcoin investment, Ethereum’s increased annual supply of 0.98% is proof that investors are also attracted to Ethereum.
The other major aspect of Ethereum’s exponentially growing popularity is because Non-Fungible Tokens (NFTs) market. For the sale of NFTs, there are hardly any NFT sales in which the payment is entertained against Bitcoin payments. Instead, if not all, but at least 80% of NFT sales had/have been against Ethereum payments. Bitcoin has been contributing to the NFTs market for only 11.5%.
On the 4th of December, 2021, a crash took over the crypto industry. Consequently, Bitcoin’s, as well as Ethereum’s values, were down once again. Bitcoin’s value was however jolted massively and even after a slight rebound, Bitcoin is having difficulty resisting the effects. On the contrary, Ethereum’s resistance is much laudable against Bitcoin. Ethereum not only showed resistance but also achieved a 24-hours high on 4th December 2021, while the crash was still there.
Bitcoin crashed for a maximum average of 30% while Ethereum’s reduction was to the tune of 17%. To date, Ethereum has recovered 15% of the lost value but Ethereum’s recovery has been not more than 11%.
The study paper also talked about how important Bitcoin is for the global crypto economy. The study had warned prior to the 4th December crash that if Bitcoin happens to undergo correction, then the entire crypto sector would crash. This has happened on 4th December eventually wherein the global crypto economy lowered by 17%.
At present, Bitcoin investors are selling their Bitcoins in an effort to pump the Bitcoin economy. There is a 50:50 chance that Bitcoin’s value might rebound back to its value again. The effort could go either way and in case the effort fails, then Bitcoin is likely to move further down in the red zone. On the other hand, Ethereum is equipped with a number of positive aspects that will guarantee its rebounding and a further surge in the future.
