Knowledge

Will Ethereum Overtake Bitcoin?

In a recent report from Bloomberg, Arca’s Bodhi Pinkner predicted that Ethereum (ETH) will become deflationary after the “Merge,” scheduled for September, helping the network transition from Proof-of-Work ( PoW) to Proof-of-Stake (PoS) after years of delay.
Will Ethereum Overtake Bitcoin? 4

Earlier this month, Lucas Outumuro, an analyst at crypto research firm IntoTheBlock, estimated that the rate of issuance of the second largest cryptocurrency in terms of capitalization would be between -0.5% and – 4.5% after Merge.

Source: Lucas Outumuro

This means that Ethereum will become increasingly scarce, giving it an edge over Bitcoin. The fact that the circulating supply of an asset continues to decrease is also a good sign for the price.

ETH is currently trading at $1,690 on spot exchanges, down 1.16% over the past 24 hours but still up 8.4% on the week.

ETH daily chart. Source: CoinCu

The ETH/BTC pair has rallied around 34% over the past month due to the excitement surrounding the much-anticipated “Merge” upgrade. However, the pair is down more than 12% from its year-to-date high of 0.82. It should also be noted that ETH/BTC is down as much as 54% from the all-time high it reached in June 2017.

Many experts believe that the current macro environment could be favorable for Ethereum.

The US Federal Reserve (Fed) has focused on fiscal tightening since the end of 2021, putting great pressure on the prices of leading cryptocurrencies.

Bitcoin dominance has been steadily declining since the beginning of 2021 to 41.1% at the moment, with Ethereum and other top altcoins dominating its market share.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Cosmos Developer Interchain Foundation Sold 3000 ETH Today

Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…

48 minutes ago

Zircuit Launches ZRC Token: Pioneering the Next Era of Decentralized Finance

George Town, Grand Cayman, 22nd November 2024, Chainwire

1 hour ago

Inflation Warning By Vanguard Amid Tariffs And Labor Issues

Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…

1 hour ago

Clanker Token Trading Volume Hits $59.8 Million High On November 21

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

2 hours ago

Bitcoin Spot ETF Inflows Hit $1 Billion Led By BlackRock

Bitcoin Spot ETF inflows hit $1.005B on Nov 21, led by BlackRock’s $608M and Fidelity’s…

2 hours ago

New York Techie Bagged $72M from $15K Investment in Ethereum — Here’s How BlockDAG Can Offer Similar Jackpot

Discover the success story of a New York tech entrepreneur who made $72M from a…

3 hours ago

This website uses cookies.