On July 24, 2019, institutional cryptocurrency exchange SFOX suggested that Ethereum may not be an altcoin anymore. In its latest report, SFOX suggested that “ETH may not fit into the altcoin category because BTC’s current correlation with Ether is markedly higher than its correlations with other altcoins.” The report further stated that “This may support the idea that Ethereum is coming into its own as a blockchain that is publicly recognized as an asset on its own terms, much like Bitcoin. If this trend continues, it may become inappropriate to categorize Ethereum as an ‘altcoin’ at par with other crypto assets that are not Bitcoin. ”
Will Ethereum dethrone Bitcoin?
Can Ethereum and Bitcoin coexist?
While over 2000 altcoins compete for market capitalization and circulation, this article will try to answer these questions.
ETH is the ONLY altcoin with the highest correlation to BTC
Ethereum’s correlation to Bitcoin in July 2019 is 0.788 while for other altcoins like BCH, LTC, BSV, ETC it is 0.638, 0.577, 0.619 and 0.602, respectively. Ethereum is gradually becoming “a blockchain that is publicly recognized as an asset on its own terms, much like Bitcoin.” Its increasing adoption and popularity have ensured that it consistently ranks second in market capitalization, even when volatility is high and prices are low.
ETH is the world’s largest Blockchain Platform
Though Bitcoin is the first popular cryptocurrency, Ethereum is the biggest blockchain by trading volume. According to dapp.com, there are over 1,600 DApps on the Ethereum blockchain. Though TRX has more active users than ETH, Ethereum still has twice as many DApps.
Ethereum has the world’s biggest and most engaged community
There are twice as many developers working on Ethereum each month as Bitcoin, according to crypto asset management firm Electric Capital’s report. Approximately 216 developers work on Ethereum every month.
Ethereum is the most decentralized blockchain platform
Analysis tool Ethernodes reports that Ethereum has as many as 17,000 nodes running the blockchain across six continents. Bitcoin beats that with more than 66,000, but many of these are concentrated in data centers.
Ethereum is the most active smart contract platform
Of the top 100 tokens by market cap, 94% are built on top of Ethereum. This proves that Ethereum has much more utility than just a payment token or cryptocurrency, Ethereum powers decentralized projects across the world.
Due to its smart contract functionality, popularity among developers and fast pace of development, Ethereum may soon replace Bitcoin as the world’s most popular cryptocurrency. Bitcoin’s fundamentals are not as strong as Ethereum and there is a small community working on updating it further. On the other hand, Ethereum’s development team is prepared for Sharding, Plasma and another fork for resolving the scalability and stability issues faced by the platform.
If Ethereum replaces Bitcoin in the future, the focus will be on driving adoption and development. Ethereum would encourage problem-solving through decentralization and drive rapid growth across industries through increased transparency and trust, using smart contracts. Bitcoin has been the subject of controversy and speculation for Government agencies and watchdogs, while blockchain technology and smart contracts are welcome in governance. Ethereum’s purpose is to drive innovation and decentralization through its platform and cryptocurrency. Additionally, Ethereum’s price has shown no significant change in the past year, which could be a good signal for its adoption.
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