Ethereum outperforms Bitcoin – That’s why ETH could be a better choice than BTC this year
3 min readThese are bullish times on the crypto market, so it almost doesn’t matter which of the major cryptocurrencies you buy – they’ve all been making profits in the last few days. However, some perform better than others. While Solana has always stood out as the biggest winner in the top 10, interests are now shifting in favor of Ethereum. The second largest cryptocurrency by market capitalization also repeatedly overtakes Bitcoin in terms of returns, as was the case this week. A development that was not observed last year, but could occur again this year. There are currently some indications that ETH could continue to perform better than BTC.
Halving Rally started
(Bitcoin Halving Countdown – Quelle: Nicehash)
Many analysts predict that the Bitcoin price could exceed $100,000 as a result of the halving. If this happens, it can be assumed that most leading cryptocurrencies will also reach new highs, from which Ethereum should also benefit.
Ethereum will soon be faster and cheaper
A key improvement that could give Ethereum an advantage over Bitcoin in the coming months is on the horizon with an upcoming upgrade that is expected to significantly increase the scalability of the Ethereum blockchain. Currently, slow transaction speeds and high transaction fees limit the efficiency of Ethereum. Problems that could soon be a thing of the past with the update.
Ethereum is about to undergo a major scalability update that could make the value proposition for its so-called Layer 2 blockchains obsolete. However, some tokens will likely continue to thrive: by @Larsen_Fin https://t.co/Ar8NH9GS9B
— Forbes Crypto (@ForbesCrypto) February 15, 2024
Although Ethereum will not reach the transaction speed of Solana even after the upgrade and the cost per transaction will remain higher compared to other platforms, a significant improvement is expected. The cost of an Ethereum transaction, which could previously be $50 or more during periods of high network usage, could drop to less than a dollar after the upgrade. This means that the blockchain should remain competitive in the long term even if strong competitors emerge.
Decision for Ethereum ETFs is getting closer
The approval of spot Bitcoin ETFs in the US has marked a turning point in the history of cryptocurrencies. After much hesitation from the US Securities and Exchange Commission (SEC), the exchange-traded funds were finally launched in January this year, which has led to a significant inflow of capital into the crypto market. There is currently a possibility that spot Ethereum ETFs could be introduced as early as May, assuming the SEC does not find any valid reasons for rejection.
I've said it many times.
The next big pump will in $ETH.
Ethereum always follows after #Bitcoin and there is a lot of bullish news in the making.
The Ethereum Spot ETF is here within 98 days.
Don't get trapped here. https://t.co/zoMHrT8LiZ
— Crypto Rover (@rovercrc) February 15, 2024
It’s not just the approval of ETFs themselves that has a positive effect on the price of the underlying cryptocurrency. Even the speculation leading up to such a decision can lead to a price increase. This phenomenon is often described with the stock market adage “Buy the Rumors, Sell the News,” meaning that the price of an asset often rises in advance of an expected development as investors speculate about the potential impact.
This dynamic was already evident when Bitcoin ETFs were introduced, with the price rally starting around three months before official approval. This time window is now also available to the SEC to decide on Ethereum ETFs, which could give rise to speculative price movements. All in all, it currently looks as if Ethereum could actually perform better than Bitcoin this year.
Basically, it is expected that most cryptocurrencies will rise sharply in the next 2 years as a result of the bull run that is supposed to be triggered by the Bitcoin Halving.
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