In 2017-2018, the debate was whether Tron would overtake Ethereum into second place. But, seeing how things are developing, the debate is settled.
Ethereum is the most dominant smart contract platform. However, that hasn’t stopped analysts from comparing Bitcoin and the world’s most valuable altcoin.
Will ETH finally overthrow BTC?
Taking X, a user complaints that Ethereum only needs time to overtake Bitcoin as the crypto leader. Citing several factors, the analyst said Ethereum is better positioned to take over as the top cryptocurrency, highlighting, among other things, the larger user base and the benefits smart contracts bring to the equation .
Looking at CoinMarketCap dataBitcoin has a market cap of over $1.3 trillion, with each coin trading at over $68,000 at spot rates as of writing on May 28. Meanwhile, Ethereum is perched in second place.
Despite being one of the best performers over the past week, increasing gains against Bitcoin, each coin is changing hands for over $3,800. Its market capitalization stands at this level at more than $465 billion.
Comparing the two, Bitcoin is approximately three times more valuable than Ethereum. Even with a larger market cap, derived from its first-mover advantage, one analyst believes Ethereum is superior.
For example, the observer said that Ethereum has a significantly larger user base than Bitcoin. The larger user base is because developers can launch protocols on the platform. Some of the most popular, like Uniswap and Aave, generate more daily fees than Bitcoin.
In addition to this, the analyst said that Ethereum serves as a store of value and a medium of exchange. These features give it more advantages than Bitcoin, which exists solely as a transactional layer to move value trustlessly and cheaply across borders.
From an infrastructure perspective, the analyst says it is easier to be an Ethereum validator than to run a Bitcoin mining rig. Over 1.9 million Ethereum validators have staked at least 32 ETH for a chance to validate a block of transactions and earn rewards. On the other hand, Bitcoin mining requires specialized hardware. Mining rigs are generally expensive and rare.
Spot Ethereum ETF Listings Approved and Security Question
Although the decision of the United States Securities and Exchange Commission (SEC) to approve the spot listing of Ethereum exchange-traded funds (ETFs) is optimistic, it remains to be clarified whether ETH is a security or a commodity . Bitcoin, in comparison, benefits from a clearer designation as a commodity.
The United States SEC has not explicitly declared ETH as a security. However, ConsenSys recently sued the agency, affirming they viewed ETH as an internal security. There has been conflict since the Commodity Futures Trading Commission (CFTC), a sister agency of the SEC, classifies ETH as a commodity.
Even as the debate rages, analysts say that if the commission approves Form S-1 for registration, it would approve ETH as a commodity.
Featured image from Canva, chart from TradingView
