Is Ethereum Outperforming Bitcoin?

Jeremy Woods
Jun 10, 2021   •  1 view

Over the past couple of weeks, Bitcoin might have pulled 20%, but that's almost five times the last year's sport. It's not as spectacular as Ethereum, which has increased 530 percent in 2012 - even after slipping from its new high of 1,958 dollars by 25 percent. This development is partly due to the exponential rise in decentralized finance (DeFi), a cryptocurrency subsection in which entrepreneurs create automated trading and lending structures in blockchain networks, which don't involve brokers and banks. The two biggest cryptocurrencies in terms of the overall market cap are Bitcoin and Ethereum. For the more accurate and latest information, visit

Ethereum is Outperforming Bitcoin. Why?

Ether has taken the lead in cryptocurrency Bitcoin in the last few weeks, which has been slightly higher than in early April. The Ether is up 41% in April, and on Wednesday morning, Bitcoin is down 8%. In a Tuesday note, JPMorgan explained three explanations why Ether performed more bitcoin and stated that the trend would continue as competition heats up in the cryptocurrency sector. The bank highlighted that there is a huge gap between Ether and bitcoin. Bitcoin is a crypto asset rather than currency, competing with gold as a value shop.

More Liquidity

Cryptocurrencies suffered a liquidity shock, but bitcoin struck harder. Significant liquidations on the derivatives market caused this liquidity shock.

Does not Rely on Leverage

In a market where spot volatility is considerably higher, long-term exposure [in Ether] may be less dependent on the leverage of future and swaps.

More Durable Demand

Etherium network has long been more frequent than Bitcoin because of the rise in DeFi and other networks in higher public transactions. As a result, more ether tokens function as highly as Bitcoin, 11% versus 4%, according to some reports in recent months... The basis of long-term exposure may be less dependent on future leverage and derivatives in a market with substantially higher spot turnover.

Comparing Bitcoin and Ethereum

The overall market cap of all cryptocurrencies is about 72 percent for Bitcoin and 15 percent for Ethereum. At present, this is a two-horse race, although the market leaders are fast gaining by another digital coin such as Cardano or Binance Coin. Bitcoin was designed to do something well—providing people with no bank or payment intermediary a way to move money from one to another. Bitcoin is regarded as a value store and also as digital gold. 18.6 million Bitcoin are currently involved, and only 21 million of these digital currencies will ever be in place. In contrast to bitcoin, Ethereum doesn't have a hard ceiling, which means that the number of coins in issue increases (114,8 million at the moment), but ETH inflation will gradually turn into zero every year as more coins come into circulation. Ethereum is based on the concept of a general blockchain for multiple purposes. Instead of being just a payment device, Ethereum can do several things. While Ether may be employed as a digital currency, its main objective is not. The Ethereum platform was specifically designed to monetize smart contracts and dApps for the Ethereum operations.

There's No Comparison between the Two

Bitcoin vs. Ethereum research contributes to a deeper debate about what technology blockchain can do to change any aspect of our lives. Bitcoin and Ethereum will most likely be a part of knowing the future of things from banking to judiciary and building. We don't have to depend on our precious data for others to transact — blockchain gives us the power to build a trustless, unchanging way of doing business. Bitcoin may remain a king of cryptos in the foreseeable future, but the focus is turning to other cryptocurrencies such as Ether's investing potential as other ecosystem areas grow.

Final Thoughts

Technological considerations often do not promote the market capitalization of Bitcoin, which is over $1 trillion. Bitcoin recently closed for the first time since 8 October 2020 for its 50 days single moving average (SMA). According to global cryptocurrency exchange Kraken, the step-down, combined with Bitcoin's inability to return immediately over the 50-day SMA, suggests that the bars could take over the market short term. Until it closes above the SMA for 50 days, one might expect Bitcoin to stay within the $51,000 to $58,000 range. Respectively, historically significant levels of support and resistance, said Kraken in a note. According to analysts, the short-term and long-term forces behind this gap between Ether and bitcoin over the last several days. "Many investors who have come to Bitcoin have learned of ethereum over the previous year and began to diversify their crypto portfolios. This is why since early 2020, you have seen Ether in a high overall pattern. The news of Ethereum 2.0 has strengthened the design. This breakthrough would reduce costs and open many innovation opportunities.