At $34,000 per coin, bitcoin has a market capitalization of roughly $650 billion, while ethereum is worth nearly $270 billion at $2,390 each ether token. Over the previous year, however, ETH price has closed the gap on Bitcoin, gaining 1,000% in comparison to Bitcoin’s 300% gain.
Ethereum has risen to popularity this year in part due to its Defi system. The traditional bank products such as loans and insurance and built on top of the Ethereum blockchain. Meanwhile, the NFT craze that has seen all manner of memes, digital artwork, tweets, and videos sold via Ethereum blockchain has further boosted demand for ether.
Ethereum is now a more popular choice among financial organizations, with many, like Goldman Sachs and JP Morgan, believing it has the ability to eventually supplant Bitcoin as the new store of value.
Goldman Sachs has teamed up with JP Morgan to promote ETH as the next store of value, claiming that its smart contract capabilities, as well as its numerous use cases, make it the most sought-after digital asset in the market.
Recently, According to crypto analytics firm Santiment, Ethereum had just over 750,00 active addresses, 50,000 more than bitcoin. Meanwhile, according to Bitinfocharts data, the total number of active Bitcoin addresses has decreased by 38% in the last three months, which might be interpreted as a gloomy indicator for the bitcoin price.
Ethereum- A Store of Value?
Until now, Bitcoin has been equated to digital gold as the de facto store of value. The top cryptocurrency is increasingly being utilized as an inflation hedge, and some Fortune 500 corporations have adopted it as a treasury hedging asset over the US Dollar this bull season.
Institutional support for Ether, on the other hand, is growing, especially with the forthcoming shift to ETH 2.0, a Proof of Stake chain. Staking on the ETH 2.0 blockchain has also resulted in a decrease in ETH supply on the market, allowing demand to rise even higher. The evolving Defi ecosystem, as well as a variety of use cases, have made it one of the most popular options among institutions.
However, toppling Bitcoin and claiming its place is not an easy task to achieve. Ethereum is now witnessing great acceptance and popularity in the mainstream. If not immediately, eventually Ethereum could come at par with Bitcoin perhaps beat it some years down the line.