Bitcoin’s crypto dominance declines as Ethereum’s value skyrockets

For the first time since 2018, Bitcoin’s market dominance has sunk below 50%. Meanwhile, Ether continues to rise in value. Stats show that a growing number of investors are purchasing Ether as it undergoes remarkable price changes in hopes that it’ll continue to grow and will allow them to make a fortune.

It was reported on Tuesday that Ether’s value reached its all-time high of 3523.59$, which boosted its market cap to over 400 billion USD. The immediate and rapid rise in value has made analysts question whether Ether could take over and dominate the crypto economy soon, leaving Bitcoin behind. Expert analysts are suggesting Ether might surpass 5000$ in the days to come.

“Ethereum has been able to maintain its positive momentum with a crushing series of all-time highs in the past week,” Executive director of cryptocurrency exchange, Konstantin Anissimov, stated in an interview with The Independent.

Similarly, as stated by Pete Humiston, the Manager of Kraken Intelligence, “The multi-billion-dollar explosion in DeFi and this year’s NFT frenzy took place on applications built on Ethereum.”

Ethereum’s rapid rise in value could put it above Bitcoin

In the previous week alone, Ethereum has seen a 35% rise, whereas, in contrast, Bitcoin has seen 1.5% growth only. Analysts suggest that the second largest cryptocurrency may actually make it to the top if it continues to grow at its current pace.

The following comparison alone puts a question mark on Bitcoin’s 12-year dominance, as experts at Kraken suggest that Ether has immense potential to grow as an increasing number of people are using it as a medium of exchange.

Bitcoin vs. Ethereum: Expert analyst views

Considering Bitcoin’s rising value over the years, it is treated as a commodity more than a currency. As mentioned by JPMorgan earlier this week, “Ether is the backbone of the crypto-native economy, and therefore functions more as a medium of exchange.”

Following JPMorgan’s statement, analysts concluded that ETH could outperform BTC over the long run, and owning a share of this potential activity is more valuable at present. Another factor noted by analysts was that both markets, BTC and ETH, experienced similar liquidity stock earlier this month, which led to a comparable de-levering of their perspective derivatives market in the following days. However, Ether’s spot market depth was faster to recover while liquidity conditions on some exchanges improved after the event.

The JPMorgan analysts further stated that “In the case of Ether vs. Bitcoin, there is no evidence of more resilient liquidity, less reliance on derivative’s markets to transfer, warehouse risk, and more durable underlying demand base – for now at least.”

While Ether is clearly a competitor to Bitcoin at present, it’s impossible to conclude whether it will overtake Bitcoin. There’s still a long way to go, and though analysts suggest that Ether is likely to continue rising in value, investing in either of the top two cryptocurrencies could prove beneficial.

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