Is there a Major Market Realignment Between Bitcoin and Ethereum Underway?
Some foretell on the basis of observation, that Bitcoin will keep losing dominance as the crypto asset surges and absorbs a significant part of the market.
The ratio of Ethereum’s (ETH) market cap to Bitcoin’s market cap has doubled in the last year. Some believe this is the beginning of the market re-rating ETH for EIP 1559 and proof of stake. These two changes will lead to ETH being a deflationary asset where each block, negative ETH are issued. This means ETH will be a more deflationary asset than Bitcoin.
ETH has been EIP 1559 Green-Lit
In March, members of ETH’s All Core Developers have green lighted to package EIP 1559 (what is it? Look it up!) for the London hard fork, which is set to happen in July (Do the research).The update will overhaul ETH’s fee market as it will introduce a base fee, or a standard fee that will be the same for all users. The upgrade will also make ETH a deflationary asset as ETH transaction fees would either be burnt or deposited into a long-term mining pool.
Crypto investment firm Pantera is also looking at the crypto sector that it says could push Ethereum to great heights.
“Ethereum has a massive ecosystem of decentralized finance (DeFi) use cases with rapidly growing adoption. Combine these two dynamics and we think Ethereum will keep gaining market share relative to Bitcoin.”
Though Pantera Capital did not issue a price prediction for the second-largest cryptocurrency by market cap, the venture capital firm is reiterating the price target for Bitcoin it set last month.
“In our April 2020 investor letter, we did predict that the halving of Bitcoin supply would drive the price to $115,212 in August 2021. As we wrote last month, the market is on pace for that to happen.”
The flagship cryptocurrency would need to appreciate over 190% to hit Pantera’s price target. At the time of writing, Bitcoin is trading at $39,502.!
Not financial advise. Everything is on sale and I'm stacking Sats!