It is a discussion almost as old as the world of cryptocurrencies itself. Goes ethereum (ETH) ever bitcoin (BTC) overtake and become the biggest. At a few moments in history, ethereum came relatively close, after which bitcoin ran out again. At the moment, there are still a number of prominent individuals who believe that ethereum has the potential to eventually ‘flip’ bitcoin.
EIP-1559 a ‘game changer’
One such person is the CEO of crypto analytics company CryptoQuant, Ki Young Ju. According to him is the recent major update of the Ethereum network, from EIP-1559 update, so important that it could eventually take the position as the largest cryptocurrency.
EIP-1559 will ensure that the gas fees of the Ethereum network will be lowered. In the past, these gas fees, or transaction fees, for problems as transactions on the network became hugely expensive. Read here today’s Timo’s take on this subject!
According to Ju is it precisely this reduction in the gas fee which can ensure that ethereum can experience gigantic growth and possibly even catch up with bitcoin. According to Ju, other platforms in the decentralized finance (DeFi) in non-fungible token (NFT) sectors still have major problems with this.
Lower transaction costs will increase the activity of such platforms. As a result, the price of ethereum will rise. According to him, a ‘flipping’ is not inconceivable.
“I think Ethereum could flip bitcoin’s market cap in the long run, but not yet this year”
Still a long way to go
While Ju strongly believes in Ethereum’s potential, he doesn’t think it will catch up in the near term. He states that he has talked to Goldman Sachs, Fidelity and other large institutional investors, among others, and found that they were incapable of explaining the possibilities of Ethereum.
That’s why he believes it will be a few more years before there really is institutional adoption of ethereum. If this eventually comes, then a ‘flipping’ cannot be ruled out, according to Ju.
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