Fintech
Ethereum Set to Outperform Bitcoin in Next Bull Market, Eyes for $10,000
After Ethereum ETF approval which directly holds ether (ETH) will soon be active in the United States. Meanwhile, report from crypto analytics firm K33 Research suggests that the ETH ETF could attract inflows of $4 billion within the first five months.
Research K33 they made their prediction examining the amount of money managed in existing ETH-based exchange-traded products around the world, comparing them to similar products for bitcoin (BTC). They also checked how many futures contracts were trading on the Chicago Mercantile Exchange (CME), which is a big deal for big investors.
Ethereum will overtake Bitcoin
For further optimism, a crypto analyst recently tweeted about why Ethereum (ETH) could outperform Bitcoin (BTC) in the second half of this market cycle. They highlighted five main reasons why ETH could be a better investment than BTC. This is especially true after recent changes such as the merger, EIP-1559, and the introduction of ETH ETFs.
Here are 5 valid reasons
Lower operational costs for validators – Ethereum validators have low operating costs, so they don’t need to sell as much ETH. Bitcoin miners, on the other hand, often sell BTC to cover high costs.
Symbolic incentives – Bitcoin pays out around $43.8 million per day to miners, creating high selling pressure. In contrast, Ethereum pays out approximately $7.2 million per day, resulting in a reduction of $36.6 million in potential selling activity.
Token burning mechanism – With the implementation of EIP-1559, approximately 80% of user transaction fees are burned by reducing the overall supply of ETH, while the remaining 20% helps keep the network running. This is different from Bitcoinwhich has a fixed supply.
Supply blocked – Nearly 40% of ETH is “soft locked” in DeFi services or as collateral, reducing its circulating supply. This helps stabilize the price and can lead to a price increase.
Increased Onchain Activity – Ethereum supports various businesses such as DeFi, layer 2 solutions, gaming, and NFTs. When network usage is high, more ETH is burned, making it more scarce and potentially increasing its value.
Ethereum eyes for $10,000
ETH Bullish Following the approval of a spot ETH ETF, Ethereum broke out of a multi-month descending wedge pattern. Meanwhile, crypto analyst Jelle suggests that if ETH breaks above $4,000, it could reach $10,000.
As of now, ETH has successfully regained the Price $3,810 range and briefly tested the $3,900 price range, with a market capitalization of $457 billion.