Bitcoin is getting all the headlines, and there are legitimate concerns about its roller coaster nature. Grow your revenue with all-in-one prospecting solutions powered by the leader in private-company data. But what about Ethereum? Conceptualized in , Ethereum is an open-source platform that helps to develop and implement new decentralized applications using the same core concepts such as blockchain. The Ethereum network shows more promise due to its real-world applications and ability to store value.
Ethereum represents the future of programmable money and smart contracts in a way that legacy cryptocurrencies like Bitcoin cannot. Ether ETH is used to pay for those transactions, as was most recently seen with the booming popularity of NFTs this spring. The result is a much higher utilization rate for ether, with far more transactions than Bitcoin in the last 12 months.
Despite the recent dip in cryptocurrencies, ether rose nearly 1, percent over the last 12 months compared to the percent increase for Bitcoin. Where a bitcoin is purely a token of value — a currency backed by the perceived value of those who hold it — Ethereum and the ETH blockchain fuel one another. Recent upgrades to the Ethereum network are helping it to scale much faster and reduce the cost of transactions on the network, further pushing the price of the tokens up.
Instead of having a central authority that oversees how the applications on the Ethereum network run and what transactions are processed, Ethereum-based apps are booming. The most common types of these apps are DeFi. The big question is where ETH will end However, there are some who see it growing even faster and more substantially in that time. These experts cite an array of upgrades being made to the network in that will reduce the currently high cost of transactions and drastically increase utility.
The biggest upgrade being eyed by investors is EIP , which will overhaul the transaction fee system used by Ethereum. Instead of sending fees to miners who complete tasks on the network, users will send the fee to the network itself, which will destroy the fee, reducing overall supply and subsequently increasing the value of the currency. Ethereum represents a sustainable, function-oriented approach to cryptocurrency that will support the future of DeFi.
That is not where many investors would have bet that the popular exchange-traded fund would be trading now based on the wild action midday Monday. But that is how quickly the worm can turn and this year may be about regime change, value versus growth and inflation versus deflation. Who will come out on top? Send tips, or feedback, and find me on Twitter at mdecambre or LinkedIn , as some of you are wont to do, to tell me what we need to be covering.
Read: What is an ETF? The closest Ether has gotten is when a narrowing of values in but since then it has struggled to challenge bitcoin. Kelly says that the growth of private blockchains, nonfungible tokens, or NFTs, the emergence of decentralized finance, or DeFi, among other factors are making Ether, which tends to power all of those, the asset to beat.
Kelly speculated that an explosion of Ether-based ETFs might come good down the road. He recently withdrew his own filing with regulators for an Ether futures ETF, with the Securities and Exchange Commission intimating that they would rather digest the recent batch of bitcoin futures offerings first. Kelly predicts that an Ether futures ETF could happen this year, in a bull case but sees his base case as next year.
The first two ETFs charge an expense ratio of 0. Kelly is a former managing director at Horizon ETFs. With interest rates likely to be rising in , rate-hedged fixed income ETFs are likely to garner attention. IGHG carries an expense ratio of 0.
Performance wise, IGHG is up 0. That is been especially clear since early December. Investors are watching closely as the Federal Reserve tries to tame a housing market on overdrive. He is based in New York.
Unlike big brother Bitcoin, Ethereum is a programmable digital currency. It's faster and more flexible than Bitcoin. Here are some of the reasons Ethereum is surging: The Ascent's picks for the best online stock brokers Find the best stock broker for you among these top picks. That's a good question. After Bitcoin's extraordinary growth story, everybody's looking for the next Bitcoin, and Ethereum is a solid candidate.
Ethereum is only six years old -- Bitcoin is now It's not entirely fair to look at Bitcoin's price when it was at the same stage because the market has changed so much since then. Plus, when Bitcoin soars, so does the rest of the market -- including Ethereum.
However, in recent weeks, Bitcoin has been falling while Ethereum has reached new highs. That's because the market is starting to recognize that Bitcoin and Ethereum do very different things. The bigger question is what will happen to the cryptocurrency industry as a whole. These are highly volatile and unpredictable investments. Of course, there are many competitors that the project has to face, such as Solana , and Polkadot. The concept of an Ethereum Killer has been around for years now, as well, and it is not impossible that one of the younger projects will eventually overthrow ETH.
However, Novogratz believes that this will not happen and that Ethereum will prevail, and become the next biggest crypto in the world. Novogratz also spoke about the recent efforts from governments around the world to regulate crypto. According to him, there are now a lot of people intimately familiar with the cryptocurrency space.
They understand it because they have engaged with it. However, those who will bring the laws regarding crypto are also those who never came into direct contact with crypto. With that in mind, it falls on the community to educate the lawmakers as best it can. Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading.
His work can be found in various high-profile investment sites including CCN, Capital. Connect with us. Table Of Contents. However, the well-known crypto bull seems to have found a new favorite — Ethereum.
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Shiba Inu supply shrinking as 2. New York? San Francisco? USD Coin. Anchor Protocol. Acala Token. Binance USD. Gemini Dollar. Small Love Potion. Discover Cardano Foundation. Celsius Network. Lightning Labs. Elon Musk. Charles Hoskinson. Sam Bankman-Fried. Janet Yellen. Jack Mallers. Brian Armstrong. The DeFi boom, helping the price of ethereum rivals such as cardano, Binance's BNB, polkadot and solana explode many thousands of percent, comes as ethereum begins its long-awaited transition away from bitcoin's proof-of-work validation model to the more energy-efficient proof-of-stake.
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Often referred to as 'The Flippening,' Ethereum's market value surpassing Bitcoin's may not be a matter of if, but when. According to data from Blockchaincenter, the market caps of Ethereum and Bitcoin are currently at a % ratio. When this reaches %, they. Ethereum would need to rise significantly As of the afternoon of Jan. 18, Bitcoin's market cap was $ billion, while Ethereum's was $