Ethereum and Bitcoin have shared the same market capacity for the previous two months. The current pandemic scenario, inflation, and potential fluctuations, on the other hand, have been a source of concern for investors.
With all of these significant issues, investors have been concerned and unsure whether to put all of their money into Trading App or Ethereum. Both Ethereum and bitcoin have their own value and individuality regarding the potential rewards.
However, is Ethereum on the verge of overtaking bitcoin as the most popular cryptocurrency? Read this article.
Significant Rise in Ethereum
The last time we checked, the value of Ethereum was $371 billion dollars, whereas the value of bitcoin was $789 billion dollars. This means that Ethereum is over 113 percent behind bitcoin in terms of price value. In order to overtake Bitcoin, Ethereum will have to increase its pricing value significantly in the following months, assuming that bitcoin’s value remains unchanged. Only in this fashion will Ethereum be able to overtake bitcoin.
This development may appear nearly unachievable, yet in 2022, Ethereum made significant progress toward making it possible.
In comparison to bitcoin, Ethereum features a programmable blockchain, which allows it to attract the attention of the developer community. These developers are responsible for the creation of non-fungible tokens, decentralized apps, and decentralized finance. The token marketplace is also expanding, as the number of dApps (decentralized apps) on the Ethereum platform has now surpassed 3000.
More utilization comes with convenience, which dApps provide. As the number of dApps users grows, the number of Ethereum users and the demand for Ethereum tokens increases. The developers are receiving more attention, which means that introducing applications is more likely.
Ethereum 2.0, released in 2022, will have more advanced and extensive features. This proof-of-stake consensus process will give the market better scalability, security, and environmental benefits. The improvement will completely transform the transaction process, increasing it from 30 seconds to 100,000 transactions per second.
The existing Ethereum mining method is similar to that of bitcoin, which uses blockchain technology to create a decentralized network where miners solve mathematical problems and pay with crypto for each problem solved. The solved block is added to the blockchain. This procedure consumes a lot of electricity and computational power, and it also lowers scalability and raises transaction fees. If only Ethereum 2.0 had been released by now, it would have already surpassed bitcoin as the most valuable cryptocurrency.
Will Ethereum Overtake Bitcoin in 2022?
The position is a little complicated and risky for Ethereum since the crypto must not only double its pricing worth in 2022, but it must also hope that bitcoin’s price value remains consistent during the year.
Bitcoin is highly volatile, but it has delivered more positive returns to its holders for the previous 5 years or more, with a claimed return of over 4700 percent. Given the increase in demand over the last few years and the increasing number of people interested in purchasing it, it’s practically difficult to believe it will remain steady at its current price. That’s why, despite the fact, it doesn’t appear that Ethereum will be able to overtake bitcoin.
In addition, the advent of Cardano and Solana in the smart-contract blockchain category has increased Ethereum’s competitiveness. Both of the freshly released cryptocurrencies are attempting to learn about Ethereum’s flaws and address them in their respective cryptos. One of the primary flaws that Cardona and Solana are examining is transaction speed and fees. Furthermore, both cryptocurrencies have seen more significant gains in the last 12 months than Ethereum.
It’s unlikely that Ethereum will replace bitcoin this year, but that doesn’t mean it’s not profitable or worth investing in.
Is it Time to Invest in Ethereum?
Visit the official website to discover more about cryptocurrencies and the best moment to buy in Ethereum. According to data and expert predictions, there are also numerous valuable growing cryptocurrencies on the market. However, Ethereum cannot surpass bitcoin’s original value and outperform it.
Ethereum is undoubtedly a valuable cryptocurrency; however, if you are purchasing it with the expectation that it will overtake bitcoin in 2022, this is quite doubtful.