Investors say Ether is ‘much more useful than Bitcoin’ and the Ethereum network is still thriving. Therefore, Ether has a good chance of outperforming Bitcoin after the cryptocurrency’s fall.
The galloping rally of the crypto markets has been suppressed within the past month. According to the data of Coin Desk On May 31, Bitcoin – the world’s largest cryptocurrency – was trading around the price threshold of $ 37,000 / dong, down 43% from the peak of nearly 65,000 USD / coin set on April 14.
Meanwhile, Ether – the world’s second largest cryptocurrency – saw a 40% drop in price from a peak of $4,382 per coin to over $2,600 per coin. Bitcoin price plummeted after Tesla CEO Elon Musk announced that the company would stop accepting Bitcoin payments. Along with that are regulatory risks from the Chinese government. However, experts say that the fall of cryptocurrencies could be an opportunity for Ether to surpass Bitcoin. The explosion of decentralized finance and non-fungible tokens has pushed the price of Ether to skyrocket over the past 12 months. Photo: Coin Desk. “More Useful Than Bitcoin” “A sell-off will cause investors to reconsider and choose to buy the cryptocurrency they think can be most successful. And most importantly, that coin needs to survive the ‘regulatory storm’ ‘ is about to come,” said financial expert Edward Moya at consulting firm Oanda (USA) in an interview with Mr. Zing . According to the expert, Ether will benefit after this sell-off. “Ethereum’s blockchain is widely used. The coin may outperform other competitors after the storm is over,” he added. Yao Qian, director of the Science and Technology Supervision Bureau under the China Securities Regulatory Commission, said that central bank digital currencies (CBDCs) are set to become smarter. According to him, they could one day work on blockchains like Ethereum. Mr. Yao Qian said that CBDC should not try to be a form of digital currency, but incorporate smart contract functionality. Even after the decline, Ether price is still up 243.67% since the beginning of 2021. Meanwhile, Bitcoin has only increased in price by 25.93%. Todd Morley – co-founder and former CEO of investment firm Guggenheim Partners – thinks that Ethereum is “more useful than Bitcoin” and is “where it really works”. The increase since January 1, 2021 of the Bitcoin price has shrunk to nearly 26%. Photo: Coin Desk. “To me, Ethereum is much more useful than Bitcoin thanks to smart contracts,” he told Bloomberg . “Ethereum’s application developers are growing at 20x for 6 years in a row, much faster than Moore’s Law,” he added. Moore’s Law refers to the prediction by engineer Gordon E. Moore, co-founder of Intel, that the number of transistors on a chip would double every two years while the price of computers halved. Over the past 12 months, the popularity of DeFi (decentralized finance) has skyrocketed, pushing up the price of Ether. DeFi projects pay interest on Bitcoin or Ether deposits, mortgage loans or cryptocurrency swaps on decentralized exchanges. Soon to surpass The Ethereum network is therefore used for financial management, lending, and collateral. All without banks and brokers. Along with that is the hot development of non-fungible tokens (NFTs), a virtual item authenticated by blockchain technology, with the digital signature of the owner. NFT is an indivisible, indivisible, blockchain-based smart contract, indestructible, verifiable, and no-second duplicate asset. Everydays: The First 5000 Days by crypto artist Beeple sold for $69.4 million at a Christie’s auction. According to part of a report by Wall Street giant Goldman Sachs shared on Twitter back in May, Ether has many opportunities to “overtake Bitcoin as the dominant store of value” and the “Amazon of information.” . Ether has a high chance of surpassing Bitcoin as a store of value Golmand Sachs analysis team “Given the importance of its use in defining a store of value, Ether has a high chance of overtaking Bitcoin as the dominant store of value,” commented analysts at Goldman Sachs. According to the data of Coin Desk , Ether’s market cap currently stands at $305 billion, almost half of Bitcoin’s $691 billion capitalization. Some are also looking to upgrades to the Ethereum network, allowing Ethereum to scale and reduce costs. “Investors often see Ether as a growth investment. They bet on the growth of a decentralized ecosystem built on top of Ethereum,” said Phil Bonello, Research Director at Grayscale Investments. , comment. The Ethereum network is more used than Bitcoin and countless developers are still working. Bitcoin now accounts for about 42.3% of the total cryptocurrency market value, down from 70% at the beginning of the year. Ether’s rate is 18.65%.
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