Completely overshadowed by the NFT and meme coin craze, Bitcoin is now on the way to make way for its arch-rival Ethereum.

The ETH / BTC pair hit their highest level since May 2018 after successfully breaking key resistance at 0.077 BTC.

While Bitcoin is still up 97% so far, it is still behind Ethereum – up 551% over the same period.

Source: Tradingview

While the ETH / BTC pair has yet to double from current levels, Bitcoin is likely to continue to be crushed by ether.

While the bullish narrative around Bitcoin has largely revolved around its store-of-value properties, higher actual returns could create more downward pressure on “digital gold”. On the other hand, Ethereum has emerged as a platform for decentralized application developers and NFT issuers, pushing ETH into the mainstream.

Additionally, ETH proponents argue that the deflationary nature of the coin makes it an even better store of value than BTC.

After starting the year on a high, Bitcoin’s rally stalled after Tesla stopped accepting the cryptocurrency in May due to environmental concerns. The sudden rejection has raised concerns about the adverse effects of proof-of-work mining (PoW). Last month, the Swedish authorities supported an EU-wide ban on Bitcoin mining because of its carbon footprint.

Ether, on the other hand, is approaching a proof-of-stake algorithm (PoS), which is intended to reduce energy consumption by 99.5%.

However, Ethereum needs to fix its own problems. As reported by Bitcoin magazine, Su Zhu, co-founder of Singapore-based hedge fund Three Arrows Capital, has ditched Ethereum in favor of Avalanche because of high fees.

There’s no shortage of chains with dizzyingly growing communities eager to eat up Ethereum’s market share. Binance Chain, Solana, Cardano, Polkadot and finally Avalanche vie for the smart contract crown of the second largest cryptocurrency.

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Annie

According to U.today

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