In the crypto realm, Bitcoin is without a doubt the oldest and most popular digital currency, followed by Ethereum. The junior peer is thought to be capable of surpassing bitcoin in price and market capitalization because of certain noteworthy differences in its technological infrastructure. On October 20, 2021, bitcoin had a market capitalization of almost $1.2 trillion, while Ethereum had a market capitalization of $455 billion.
Experts believe that only Ethereum has the potential to surpass bitcoin’s massive market capitalization. Let’s take a closer look at the differences between the two cryptocurrencies and see how their prices can diverge in the future.
What Makes Ethereum Unique?
Ethereum is an open-source platform that, like blockchain, aids in the development and implementation of decentralized applications. Because of its real-world uses that can store significant value, Ethereum is thought to be a better bet than bitcoin.
The infrastructure of this cryptocurrency allows for the building of new applications. While bitcoin is digital money, Ethereum is a blockchain-based network that also operates the same-named cryptocurrency.
This ETH currency and the ETH blockchain are complementary, and the network tends to favor currency growth by lowering transaction costs. The price of tokens grows as a result of this process.
In a nutshell, Ethereum can ease global payments because it allows other apps to be built on top of its decentralized infrastructure, allowing smart contracts to be executed between diverse parties without the use of any intermediaries.
ETH vs. BTC
On October 20, 2020, the price of bitcoin was $11,913, and on April 20, 2021, it was $56,483. On October 20, 2021, this increased to $63,995. This resulted in a 374 percent increase in bitcoin’s price in the first six months, and a 437 percent increase in the past year.
On the other hand, the price of Ethereum was $368 on October 20, 2020, and it soared to $2,332 on April 20, this year. On October 20, 2021, this had risen to $3,849 dollars. This translates to a 533 percent increase in the price of Ethereum in the first six months and a total increase of 946 percent in the last year.
As a result, we can state unequivocally that bitcoin’s price is far ahead of its younger counterpart, and it still has the first mover’s advantage. However, as the Ethereum network grows stronger, the situation may alter in the future, bolstering the currency’s value.