Ethereum May Be Top Candidate To Continue Outperforming Bitcoin, Says McGlone

Key Points:

• Both Bitcoin and Ethereum have lost around 75%, but the yearly volatility of Ethereum is around 1.3x that of bitcoin.
• Ethereum has progressed and now powers a wide range of applications through smart contracts.

According to a senior macro strategist at Bloomberg, Mike McGlone, Ethereum, the second-largest cryptocurrency in the world by market value, is likely to surpass Bitcoin in the upcoming bull market.

Despite the fact that Bitcoin and other risk assets have fallen significantly in value over the last year, McGlone highlighted in the recent market forecast study that Ethereum has shown greater resilience, suggesting that it “may be a top candidate to continue outperforming the firstborn crypto.”

The two top cryptocurrencies have lost around 75% after reaching all-time highs in November 2021. Notably, the yearly volatility of Ethereum is around 1.3x that of bitcoin. While the former remains significantly cheap, McGlone highlighted that at a ratio of 0.08, the ETH/BTC cross rate remained the same as in May 2021, when the Nasdaq 100 Stock Index was roughly 20% higher, indicating that ETH is likely to resume growth if volatility is any indication.

Migration into the mainstream is our key takeaway and once the dust settles from some reversion in risk assets amid inflation pressures, Ethereum is more likely to resume doing what it has been—outperforming.

Glone wrote

Ethereum has been the center of attention in the last year as crypto use has accelerated rapidly. Although the cryptocurrency was modeled after bitcoin in its early years, it has progressed and now powers a wide range of applications through smart contracts, making it a favorite among institutions, developers, and enthusiasts who believe it is a valuable altcoin with real-world applications.

The increase in its market dominance has mostly reflected its demand. In 2021, the market dominance reached 22%, implying that it might “Flippen” Bitcoin at some time.

Ethereum was trading at $1,220 after a 3.09% increase in the past 7 days.

On the other hand, Bitcoin was exchanging hands at $16,831 after adding 0.71% in the same period, according to data from Coincu.

Ethereum’s earlier this year migration from Proof-of-Work to a more eco-friendly Proof-of-Stake consensus blockchain has also increased its attractiveness to governments and organizations throughout the world, as the fight for lower carbon footprints continues.

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.

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