Ask ChatGPT or Raoul Paul or Cathie Wood, they all seem to have taken the same road that Ethereum, the crypto queen, is gonna outperform Bitcoin, the king, in the next bull run. However, these are all predictions but are definitely based on valid reasons.
Ever since its inception Bitcoin has been the leader of the crypto industry with a market cap that has mostly remained more than 50%. No other coin has even come closer to that and to be honest no coin seems to overtake Bitcoin's market cap in near future. But Ethereum, the No. 2 on the market cap, has been fiercely chasing down Bitcoin and sometimes it has even made us believe that a big upset is just around the corner. Take a look at the comparison chart of both coins and you will find out that there are points when Ethereum reached as far as that half of total Market Cap of Bitcoin. This isn't a small feat.
Now let's turn our heads towards the question 'why will Ethereum outperform Bitcoin in the next bull run? To be clear and and concise, outperform here means the average gains and doesn't imply that Ethereum is going to overtake Bitcoin on the market cap. With that being said, here are the top 3 reasons to prefer Ethereum over Bitcoin for the next Bull run.
1. Ethereum 2.0 And The Post Merge Roadmap
The last year's landmark upgrade known as the Merge is definitely going to revolutionise the entire ecosystem of Ethereum. As the Merge is not one upgrade to the Ethereum main net, instead it's a series of upgrade stages. The merge alongwith these upgrades aims to enhance the overall efficiency of Ethereum and in return this will be the strongest force behind the adoption of Ethereum. With the Gas Fee going lower and improved scalability, who wouldn't want want to use as versatile a chain as is Ethereum?
2. Approval of Spot Ethereum ETFs Before a Bitcoin Spot ETF
Yes, you heard it right. The chances of approval fo a spot ETH ETF before a Spot Bitcoin ETF are higher as the deadline for the decision on a spot ETH ETF from VanEck and Ark Invest is on Dec 26, 2023.
As of now, we might not be cocksure that a spot based Ethereum comes first or a Bitcoin based. However, it's a surety, if any of these approved by the SEC in the U.S., the other one will definitely be approved. Most probably the approval for spot ETFs would coincide with the start of next bull run or with the Bitcoin halving, makes it even more interesting.
Also, after the Merge Ethereum is now capable of reaping rewards for staking, the spot Ethereum ETFs would not only attract the investment from institutions, it will also lure then to stake their Ethereum for rewards. This in turn would induce a demand for Ethereum. As Ethereum now allows liquid staking, the institutions would try to give to their investors a higher returns by simply staking their ETH holdings.
3. Ethereum's Smart Contract Capability
This one's is an ever known reason that gives an edge to Ethereum over Bitcoin. Ethereum's Smart Contract Capability gives it a much enhanced utility over Bitcoin. Ethereum enjoys a number of use cases like NFTs, DeFis, gaming and metaverse due to its interoperable capability of deploying smart contracts. Even AI is better suited to run on Ethereum rather than on Bitcoin. This capability is what makes Ethereum all at once a far superior Blockchain than Bitcoin.
So, these are the top reasons why we think that Ethereum is gonna outperform Bitcoin in the next bull run. Also, we must remember that this won't be the first time that Ethereum becomes much more profitable in a bull run. The last bull run where Ethereum went as high as $4891.70 in Nov, 2021, while the price for 1 Ethereum was only around $400 in Nov, 2020. That gave a massive gain of 1200% in a year. In comparison, Bitcoin was around $13000 in Nov, 2020 and rose to $68770 in Nov, 2021 almost gaining around 500% in a year.
Overall, with Ethereum boasting a long list of capabilities and history suggesting to repeat itself for one more time, it's evident that Ethereum is set to surpass Bitcoin on the yearly gains in the next bull run. However future is just a projection so DYOR before applying any investment strategy.
As Always Thanks For Reading.
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