Bitcoin vs. Ethereum: What Are Crypto Whales Hoarding?
The cryptocurrency market has been a hot topic lately, with investors trying to predict which digital asset will provide the best returns this year. Bitcoin and Ethereum continue to compete for dominance as the market shows a recovery. While altcoins can provide significant gains, Bitcoin and Ethereum remain the two largest high-caps and are still the most popular investments in the crypto world.
Ethereum’s Deflationary Advantage
According to Altcoin Daily, Ethereum is currently in a unique situation. Network activity is rising and the Ethereum supply pie is shrinking, making Ethereum a deflationary asset, which is a huge plus for investors.
Ethereum has been around for eight years, and during this time, we have seen many decentralized applications flourish on top of Ethereum. These DApps, like DeFi and NFTs, take supply off the market, making Ethereum an even more attractive investment.
blockchain gaming and nft
Like NFTs in 2021 and DeFi in 2020, blockchain gaming is becoming the next big thing in the crypto world. In-game assets are becoming NFTs that users actually own, and the promise of turning in-game items into NFTs is becoming a reality. , This development could be a key factor in Ethereum’s future success, given that Vitalik Buterin was inspired to create Ethereum because of a game, World of Warcraft.
bitcoin time cycle
In contrast, bitcoin’s time cycle shows that it is entering a recovery phase. The number of bitcoin whales has fallen to its lowest level since 2019, while the number of small investors has gradually increased over the past five years. Mega whales holding more than 10,000 bitcoins are nearing an all-time high.
ethereum vs bitcoin
While it is difficult to accurately compare bitcoin and ethereum, the potential for ethereum is becoming increasingly apparent. The Ethereum network has become a deflationary asset since mid-January this year, with the adoption of NFTs, blockchain gaming, and the recent upgrade, EIP 1559. The more adoption, interest, and trading volume the Ethereum network sees, the scarcer the asset may become.
Only time will tell which cryptocurrency will experience the most growth this year, but Altcoin Daily’s personal opinion is that Ethereum will see more significant returns than Bitcoin over the next few cycles.
At the time of this writing, bitcoin is valued at $24,754, and Ethereum is valued at $1,682.