Can Ethereum Overtake Bitcoin in Capitalization
For 12 years now, Bitcoin has been the most important cryptocurrency on the crypto market. It has the largest capitalization, the largest trading volume, the largest number of investors, and the largest market share. Right behind it is Vitalik Buterin’s Ethereum network, which continues its transition to the proof-of-stake consensus algorithm.
Last week, the cryptocurrency https://business-money.com/announcements/how-to-buy-digibyte/ market regained strength and returned to growth. Although Bitcoin showed a strong upward movement, the real headliner was Ether, which again reached its all-time high. At the end of the seven-day reporting period, the total capitalization of the cryptocurrency market has increased significantly. At the time of writing Uberblick on cryptocurrencies, it was $2.7 trillion.
Ethereum: “Digital Oil”
This cryptocurrency managed to overtake Bitcoin in terms of growth rate not only on a weekly basis but also for the entire last month. If the first cryptocurrency grew by an impressive 39.9%, Ether even increased by 42.9% over the month. Ethereum surpassed the $4,500 mark and hit an all-time high when it became known that the Chicago Mercantile Exchange (CME) would soon introduce digital oil micro futures. Therefore, most online platforms have adapted to TRX to Ethereum exchanges, such as Changelly taking the lead.
The weekly gain was an impressive 11.58%, with Ethereum’s (ETH) share of the total cryptocurrency market cap rising by 0.59 percentage points to 19.71% over the period.
In a press release from the parquet dealer, the exact date for the start of trading was set for December 6. According to the plans of the CME, each contract will correspond to 0.1 ETH. “Since the introduction of Ethereum futures in February this year, we have seen a steady increase in liquidity, especially among institutional traders,” said Tim McCourt, Managing Director of CME Group.
How Ethereum Breaks Into Bitcoin
A significant development for Ethereum is the Berlin update of the ETH network, which is intended to reduce transaction fees with Ethereum. The algorithm is based on the “burning” of part of the commission allocated to the miners. The high liquidity of the altcoin and the increased transaction speed have also contributed to its growth.
Another factor contributing to the growth of Ethereum is the activity of major investors investing $100,000 or more in altcoins. On May 4, 2021, the capitalization of Ethereum was about 30% of the total value of Bitcoin. An altcoin is backed by many financiers and analysts, including billionaire Mark Cuban.
According to the investor, Ethereum attracts market participants with its high speed of authentication and delivery of digital assets. In the billionaire’s investment portfolio, 30% of ETH’s cryptocurrency is bought, while 60% of digital coins are bitcoins. The remaining 10% of Kuban’s cryptocurrency portfolio comes from other altcoins.
Ethereum smart contracts for DeFi are better than banks for depositing, accumulating, and trading financial instruments. “They are automated, trust-free and almost instantaneous,” Mark Cuban wrote on his Twitter. Judging by the current situation in the cryptocurrency market, it is very likely that the value of Ethereum will continue to rise in the near future. The message is not a financial recommendation.