Ethereum may be inching ahead of Bitcoin in this race
The Bitcoin v. Ethereum debate is as old as these cryptocurrencies themselves. Now, while fanatics from both sides argue the superiority of one asset over another, it’s undeniable that Bitcoin’s throne remains untouched.
However, it is also undeniable that with an improving ecosystem, constant updates, and institutional support, Ethereum is inching closer too.
The month of August saw a solid recovery from both. In fact, the 30-day returns for Bitcoin and Ethereum projected positive values of 15.84% and 25.95%, respectively, at the time of writing.
With Bitcoin’s price consolidating, a fall in BTC dominance was also seen over the last couple of weeks. In fact, the same, at the time of writing, was at its lowest since June. So, could this actually mean that Ethereum is challenging Bitcoin’s dominance?
Ethereum taking on BTC?
A recent Bloomberg report highlighted that “Ethereum is challenging Bitcoin’s dominance in the crypto world.” The hypothesis was based on the fact that Ethereum’s one-month forward contract was trading at an 8.37% premium when compared to the spot price. On the contrary, Bitcoin’s one-month forward Futures contracts had a premium of just 6.58%.
This further presented the possibility of ETH enjoying greater institutional adoption and a higher level of bullishness, when compared to Bitcoin. Additionally, Open Interest in Ethereum contracts versus Bitcoin also hiked from under 0.1 in April to nearly 0.3. The same can be supported by the institutional attention Ethereum has been getting lately.
While both Bitcoin and Ethereum investment products remain the most popular picks for investors, Bitcoin continues to dominate the investment product space. The same was highlighted in a previous article.
Nonetheless, since July, while Ethereum’s AUM has risen by 72.8% to $13.8 billion, BTC’s AUM increased only by 51.9% to $38.1 billion. Most notably, BTC lost market share too, with the same falling to 69.6% of the total AUM from 72.1% last month.
Bitcoin still the king?
While Bitcoin remains king of the market, a blind eye cannot be turned to the pace of Ethereum’s advancements. Ethereum still seems to be surfing the wave of its network adopting the London upgrade.
The altcoin is expected to become deflationary in the coming months. This can further spur bulls and invite institutional attention in the top altcoin.