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Ethereum could be a better store of value than Bitcoin, some experts say

Bitcoin has inarguably built a kingdom with adamantine fences where not even its highly mediatized conqueror, Ethereum, is seen as having the power to take them down.

However, it wouldn’t be exaggerated to say that most of its value resides in its status as the primary cryptocurrency and the project that gave blockchain the first colossal use cases up to that point.

Ethereum has emerged as a solution to the limitations and insufficiencies of Bitcoin, building on the tech ground paved by Bitcoin.

Yet, as it seems these days, the crypto experts and analysts placing increasing bets on Ethereum as the future crypto market leader are not few.

Head of institutions at Safe and banking stager, Julian Grigo, is just a financial old-timer out of the many that predict the tables could turn in favor of Ethereum.

Bitcoin’s halving, for instance, is widely believed to have blessed Ethereum more than its price, which wouldn’t be the first time that the latter exploits the cyclical reward reduction.

Only this time, the events unfolding as of late could contribute to even heavier influxes in Ether’s underlying capital, pushing its value to new heights.

The ongoing battle between Bitcoin and Ethereum as stores of value and, implicitly, potential to have mastery over all the other imitations, is still going strong. So let’s discover where are we heading, assuming you’re down to buy Ethereum online one day.

Ethereum’s rising dominance over Bitcoin

Both Ethereum and Bitcoin have risen from the ashes of past downfalls in the financial space, like the dire ending of colossal banks and their dramatic repercussions.

The ripple effect seized the market, as it was perfect, which significantly hindered the ability of Bitcoin, Ethereum, and the rest of crypto coins to achieve their full potential.

However, now that the two primary cryptocurrencies have started the year on the right foot, it’s safe to say that these two hailed assets can pick up from where they left off.

This resurgence is what leads the world today to assess Ethereum’s signaling sway and the chances of destabilizing the all-time crypto front-runner.

Ethereum is, from many POVs’ nipping at Bitcoin’s heels, whatsoever.

Analyzing historical performances spanning the past three years, conclusions are that Ethereum’s price inflated by around 147%, bringing it to an almost threefold value that blessed investors with astronomical rewards.

Not a few were the periods when Ethereum was hailed as the best store of value and had investors cash in on the heavyweight asset for more capital investable in ETH.

Similarly, Bitcoin prices increased as well, but given its exorbitant price per coin, the 36% value accumulated is seen as a fair rise.

If you press rewind, Ethereum has risen by around 2,624%, while Bitcoin gained 1,626% over the past six months.

ETH – a market cap four times greater than that of rivals

The market cap of BTC and ETC combined account for 70% of the whole crypto market, with the former boasting a figure larger than $1,4T, whereas the latter accumulated an impressive $460B total.

Nevertheless, despite what would seem an evidently astronomical discrepancy between the two, it’s essential to look at the current price per coin and the performance’s growth over time.

Ethereum can flaunt a market cap four times larger compared to that of any existing cryptocurrency out there.

Clearly, new crypto projects with great potential will emerge, whereas some that now have excellent prospects could strike investors with unpreventably significant gains.

Yet, it’s just as apparent that for the time being and well into the future, no other cryptocurrency stands the ground to achieve success similar to Ethereum’s.

Ethereum’s challenge vs that of Bitcoin

Bitcoin and Ethereum could initially seem the same if you look at their preponderance, mediatization, popularity, and several other etalons.

However, they both have their torches to carry, differing in the challenges they are working to overcome significantly, which is where the difference between them two mainly lies.

Bitcoin’s primary and current battle is to reduce the harm done to the planet through energy-intensive mining processes, which are the only means of creating new coins.

The switch to a green system called proof-of-stake could propel it in the eyes of investors and environmental activists, unlocking a new era of growth for the asset.

This is especially important if you take a second to consider the worldwide regulations, sets of standards, and strides made in this regard, such as the ESG principles.

Ethereum, on the other hand, struggles to stay on top of the competition that gains ground by the minute, such as Avalanche (AVAX) and Solana (SOL) – two of the best blockchains momentarily.

The “Ethereum killer” ledgers bring things to the table that Ethereum is yet to provide, like lower transaction fees, reduced gas fees, faster transaction speed, and several other advantages.

The battle is intense, and calling one the better long-term investment in favor of the other would be rushed and insufficiently endorsed by accurate data. Yet, sympathizing with one or the other is only natural, for each investor has their own beliefs and perspectives.

The halving to benefit Ethereum unexpectedly much

The halving, an awaited event occurring every approximate four years that slashes the amount of Bitcoins that miners receive after veryfing mathematical calculations, is bound to impact both of the biggest cryptocurrencies.

The catch is that the effects will mainly differ. The new milestone in Bitcoin’s history may remind everyone of the advantages of owning an asset with a fixed or decreasing supply.

However, Bitcoin’s supply growth sticks to an upward trend despite a sluggish tendency in the mining time rates. At the same time, the supply of Ethereum is slowly but steadily decreasing, as 0.21% of the total amount existing is being burned every year.

To date, over 357,000 ETH has been burnt since September of 2022, accounting for an approximate value of $947M.

As such, the lesson that Bitcoin’s halving will offer could have an unexpectedly beneficial impact on its rival, increasing Ethereum’s valuation in time as investors are reminded of the lucrative trait of an asset that rises in scarcity.

Now that Dencun is completed, the crypto community keeps tabs on the effects.

With the potential of having ETH ETFs approved sooner or later, as well as the launch of EIP-4844 and the overall Dencun upgrade, the second-best crypto could witness price gains.

This hypothesis is primarily backed by the crypto community, with a notable instance being linked to Luke Nolan, Ethereum researcher at CoinShares.

According to them, the Ethereum supply is bound to be affected by the already-implemented Dencun upgrade. It will sure be an exciting period for Ethereum and several other cryptocurrencies, so stay posted for more!

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