In 2017-2018, the debate was whether Tron would overtake ethereum and take second place. But, seeing how things have evolved, the debate has been settled.
ethereum is the most dominant smart contract platform. However, this has not stopped analysts from comparing bitcoin and the world's most valuable altcoin.
Will eth finally change btc?
Bringing x, a user x.com/delzennejc/status/1795084362087625072″ target=”_blank” rel=”noopener nofollow”>claims that ethereum just needs time to make bitcoin the crypto leader. Citing multiple factors, the analyst said ethereum is best positioned to take over as the first cryptocurrency, pointing to, among others, the larger user base and the benefits that smart contracts bring to the equation.
Looking at CoinMarketCap databitcoin has a market capitalization of over $1.3 trillion, with each coin trading for over $68,000 at spot rates as of writing on May 28. Meanwhile, ethereum is in second place.
Although it has had one of the best results in the last week, extending gains against bitcoin, each coin is changing hands for more than $3,800. It has a market capitalization of over $465 billion at this level.
Comparing the two, bitcoin is about three times more valuable than ethereum. Even with the larger market capitalization, stemming from its first-mover advantage, one analyst believes ethereum is superior.
For example, the observer said that ethereum has a significantly larger user base than bitcoin. The broader user base is because developers can launch protocols on the platform. Some of the most popular ones, like Uniswap and Aave, generate more daily fees than bitcoin.
In addition to this, the analyst said that ethereum serves as a store of value and medium of exchange. These features give it more of an advantage over bitcoin, which exists purely as a transactional layer to move value trustlessly and at low cost across borders.
From an infrastructure perspective, the analyst maintains that being an ethereum validator is easier than running a bitcoin mining rig. More than 1.9 million ethereum validators have staked at least 32 eth for a chance to validate a block of transactions and earn rewards. On the other hand, bitcoin mining requires specialized hardware. Mining rigs are usually expensive and scarce.
Detect ethereum ETF Listings Approval and Security Question
While the US Securities and Exchange Commission's (SEC) decision to approve spot listing of ethereum exchange-traded funds (ETFs) is bullish, it has not yet been clarified whether eth is a security or a commodity. cousin. bitcoin, by comparison, enjoys a clearer designation as a commodity.
The US SEC has not explicitly declared eth as a security. However, ConsenSys recently sued the agency, claiming that they considered eth a security internally. There is a conflict since the Commodity Futures Trading Commission (CFTC), a sister agency of the SEC, classifies eth as a commodity.
Even as the debate continues, analysts say they would support eth as a commodity if the commission approves the S-1 form for registration.
Featured image from Canva, TradingView chart