Ethereum, the second largest cryptocurrency in value after bitcoin, has broken away from the bitcoin price and has risen higher in recent days.
Ethereum price is up 30% in the past week, breaking through the closely watched USD 3,000 level and bringing year-over-year gains to nearly 1,500% –although it can’t compete with dogecoin’s rally.
Just like ethereum cuts the highest price of fresh products, investors have warned that bitcoin is at risk of falling behind.
“The cryptocurrency space today is very similar to the internet space in 1997,” said Fahad Kamal, chief investment officer at Kleinwort Hambros, Société Générale’s UK private bank. Business insider.
“In 1997 we thought Netscape Navigator was by far the most advanced advanced browser and nothing could ever compete with that. And here we are, of course, Netscape is long [gone]. In 10 years, I have no doubt that blockchain technology will become a very serious force in our lives. I have much, much less belief or confidence in whether bitcoin will last that long.
“There are other cryptocurrencies … that are arguably much better in their construction and underpinning. Ethereum, for example.”
The cryptocurrency community has long been divided between bitcoin and ethereum with so-called bitcoin maxis claiming that ethereum is not a good store of value, while ethereum investors are criticizing bitcoin for its clunky and outdated blockchain technology.
Some, including the co-founder and executive chairman of cryptocurrency company Ripple, have proposed bitcoin follow ethereum in the transition to a more environmentally friendly blockchain model.
With ethereum price outperforming bitcoin price three-to-one over the past year, ethereum bulls have raised their expectations and predictions that a future decentralized internet will be built on ethereum’s blockchain.
“Ethereum is expected to significantly reduce bitcoin’s market dominance over the next year and beyond,” said Nigel Green, CEO of deVere Group, in comments by email.
Green expects the ethereum price to hit $ 5,000 per ether token over the next week, indicating ‘rising interest from major institutional investors’ and the growth of decentralized financing (DeFi) and the sudden popularity of NFTs largely on top of the ethereum blockchain. are built. .
“As compared to [bitcoin], Ethereum is more scalable, offers more applications and solutions, such as smart contracts already used in many industries, and is backed by superior blockchain technology. Ethereum has been ahead of bitcoin for years in everything but price and fame. There is a real sense that 2021 is the year for ethereum. His time has come. “