What Analysts Think: Will ETH Outperform BTC in this Cycle?
CryptoNewsTerminal Staff05 Jun, 2024
What Analysts Think: Will ETH Outperform BTC in this Cycle?
Currently, Ethereum (ETH) is the world's second-largest cryptocurrency, and many enthusiasts believe it will remain in this position. According to the founder of cryptocurrency analytics platform The Defi Report, Michael Nadeau, "Ethereum is set to outperform Bitcoin in this cycle." Ethereum, as a blockchain, has many advantages over Bitcoin. For instance, its validators have incredibly low operating costs, eliminating the need for frequent sales. Additionally, ETH burns and purchases tokens as the network grows in popularity. Furthermore, Ethereum boasts more extensive on-chain activity than Bitcoin. This includes a wider range of DeFi applications, Layer 2 solutions, and NFTs. The fact that 40% of the ETH supply is soft locked (staked, etc.) and generates roughly $7.2 million per day in staking rewards demonstrates the robustness of the Ethereum network. Despite these benefits, ETH has not performed as well as expected in this spot ETF bull market. However, given Ethereum's solid fundamentals and increasing adoption, it is reasonable to anticipate that it will outperform Bitcoin in the long run.
