The latest update to Ethereum’s “London Hard Fork”, has seen a sharp rise in the second-largest cryptocurrency. Investors of Bitcoin felt “left behind” by this update. Now, Bitcoin is exercising its muscles.
The market cap of the numero uno crypto token has reached $50,000. This is an increase of more than 70% from the $29,000 lows. Ethereum has increased by approximately 80 percent to $3,300, from $1,850.
The fierce tussle between them has rekindled investor debate about which one is better. The interest in crypto giants hasn’t died down despite a sharp increase in altcoins.
Sharan Nair is the Chief Business Officer at CoinSwitch Kuber. She said that Ethereum’s price has risen due to the many DeFi projects happening around it. Analysts believe that the latest update to Ethereum has reduced the supply, which has led to a sharp rise in the price of the token. It cannot dethrone Bitcoin.
Siddharth Mónon, CEO of WazirX said that Ethereum could outperform Bitcoin in terms of returns, but not market capital. He said that Bitcoin will continue to hold the largest market share and be dominant.
As a result of the London Hard Fork update, Ethereum is experiencing a scarcity premium. Bitcoin, the oldest cryptocurrency, is in short supply. It can only be mined 21 million Bitcoins.
“Ethereum does not have an explicit supply limit. However, if there is a shortage, I expect that prices will rise. Nair stated that it is the basic demand-supply rule.
The upward movement of Bitcoin has historically been aided by supply shock, which may help to push Ethereum prices higher. Analysts can’t pick between the two due to strong fundamentals and well-defined usage. They also appreciate the outperformance of Ethereum over the years. Both tokens are being bullish by analysts. This is a positive market recovery, and the crypto market cap has surpassed $2.1 trillion. He said that this should be a positive signal for the rest of market.”