Could Ethereum Beat Bitcoin?

The second biggest giant in the cryptocurrency scene is Ethereum, and prices of its coin Ether (ETH) have been kept afloat this year amidst in choppy crypto seas by expectations of a large-scale upgrade called the Merge happening in September. Many people have been wondering if this could portend a future where Ethereum leaps to the position of top market cap, thus dethroning the so-called King of Crypto—Bitcoin. 

At the outset, there’s plenty to love about Ethereum that also positions it optimally for the future. The Ethereum blockchain is particularly handy, allowing apps, tools, and NFTs (non-fungible tokens) to be created and set up for users in the music industry, gaming sector, or DeFi space. “Ethereum has 90% of the NFT market”, states Henri Arslanian of PwC. “Smart Contracts” are another one of Ethereum’s specialities. These are special instructions, built into the blockchain, for arranging financial agreements. Ether often sees its value supported by the utility of the blockchain. “My optimism is tied to just the versatility of what you can do with Ethereum”, says John Zannos of Inflection VC. In 2022, the Big Merge will take the Ethereum network from proof-of-work to proof-of-stake, which will eat 99% less power and work more smoothly, and which has already injected strength into Ether prices when other cryptos have suffered from the risk-off sentiment. If the Ethereum blockchain ends up more popular, sustainable, and useful, it’s likely ETH could benefit as a result. 

Analysts say that, if the changeover goes well, the trajectory of the token could be much improved in months to come. On the other hand, the shattered confidence in the crypto space following the May collapse of the TerraUSD stablecoin leaves little room to feel self-assured. What can we expect of ETH in the months ahead? If you’ve got an interest in CFD crypto trading, or if you’d like to find out more about Ethereum, join us for some discussion on the question.

Bearishness

Within a seven-day period in the last week of June, Bitcoin lost more than 30% and ETH also fell – landing below $1,000. The US Federal Reserve had recently raised interest rates by 75 basis points, triggering a bull run on the stock market, but cryptos were not carried along. This was “a troubling sign for some investors’, in the words of Edward Moya of OANDA. Back then, crypto educator Wendy O pointed out that BTC and ETH can tend to drop 85% in bear markets and predicted ETH could fall to $750. The low confidence in the sector was decisive for Kavita Gupta of Delta Blockchain Fund, who believed ETH would hit $500 and told us not to expect a rally for about a year-and-a-half. By August 19th, Ether was holding at $1,500 amid a cloudy economic outlook and Moya believed Bitcoin could descend to $10,000. Wendy O had not changed her tone, stipulating “We’re in a full-blown bear market, not a bear cycle”. 

Bullishness

Going into September, the Ether crypto trading price was in the range between $1,400 and $1,700, which put it at a loss of over 50% for 2022, but up from June’s low point of $900. In the midst of the hype surrounding the imminent Merge, Mike McGlone of Bloomberg predicted ETH could end the year somewhere between $4,000 and $4,500. Coinpedia said it would be about $2,500. Looking a bit further ahead, Coin Price Forecast saw ETH ending 2023 at $2,600, taking into account the damaged crypto trading market as well as potential hurdles in the adoption of the new proof-of-stake network. However, in 2025, Coinpedia posited that ETH could attain the princely price of $10,000, citing the more affordable facilitation of Ethereum-based products expected from the Merge. 

Transactions on Ethereum in pre-Merge times were known for being relatively expensive and also for being slowed by high activity levels. The challenge was especially pronounced due to the fact that networks like Cardano and Solana offer similar attributes to Ethereum’s. If the Merge solves these problems, it could knock down a big hurdle obstructing Ethereum adoption. Could the fact that Ethereum was the first to display these kinds of talents stand in its favour? “I think the first mover advantage is real”, answers John Zannos of Inflection VC. Still, he points out that the key factor in deciding Ethereum’s competitive future is “the health and size of the community” that uses the network.

Looking Forward 

If you keep up with trends impacting the sector to guide your crypto trading, watch out for news about Web3 this year and the next. This is the use of blockchain technology to make financial transactions more transparent, and it’s still being developed. Ethereum, along with Cardano, Solana, and Tezos, are involved in setting up the infrastructure needed to power this new trend. “2022 will be the battle for Web3 and the next evolution of the internet”, says Ian Balina. Can Ethereum push its market cap over and above Bitcoin’s? No one knows, but crypto promoter Roger Ver says, “I see it happening”.