Ethereum could continue to outperform Bitcoin and is poised for another bull run
Since Ether breached $3,400 on August 31, ETH continued to soar and, at the time of writing, the crypto traded at $3,762.51 posting a year-to-date return of 410.61 percent.
Thu, 02 Sep 2021, 06:21 am UTC
Ether, the native crypto of the Ethereum network, has been outperforming Bitcoin this year. Experts believe that with the growth of the decentralized finance (DeFi), ETH will continue to outperform BTC and might even overtake it in the coming years.
On August 31, Ethereum soared past $3,400 which is a major psychological barrier for the crypto. Since then, ETH continued to soar and, at the time of writing, the crypto traded at $3,762.51 and a year-to-date returns of 410.61 percent, based on Coindesk data.
While Bitcoin’s price also soared higher this year, its gains are relatively more modest compared to Ether’s. At the time of writing, BTC traded at $46,566.42 with YTD returns of 70.49 percent.
However, crypto experts believe that Ether’s momentum is not going to stop anytime soon. In fact, it could rally to a new all-time high once it breaches the last resistance barrier at $4,078, according to FXStreet.
The number of active addresses and transaction volume on the Ethereum network spiked along with the rise in non-fungible token (NFT) activity. In fact, current on-chain activity is at a similar level in April 2021 when the first leg of the bull run started. This could suggest that ETH’s is poised for the second leg of its rally.
With their superior utility, Etherem and other smart contract-enabling blockchains are bound to outperform Bitcoin in the long run, according to Dmitry Mishunin, founder and CEO of smart contract audit firm HashEx.
“The duo of Cardano and Ethereum has the propensity to harbor countless innovative projects,” Mishunin said. “Bitcoin only relies on its capped supply and the first-mover advantage, a trend many investors are beginning to substitute for unique technology that can drive a blockchain-dominated future.”
Another factor at play is the recent burning of around 146,878.7 ETH worth $492.3 million from the crypto’s circulating supply since the latest Ethereum Improvement Proposal (EIP-1559) went live. Crypto experts estimate that the drop in Ether supply is equivalent to two Bitcoin halvings.
“The potential for a more superior Proof-of-Stake infrastructure through the highly anticipated launch of Ethereum 2.0 will also make the blockchain more usable, thus driving the coin’s utility and its price growth,” Jon Ovadia, founder and CEO of crypto exchange Ovex, said.
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