Will ethereum beat Bitcoin?

When compared to the market share, Bitcoin is still way ahead compared to Ethereum. The May rout helped Ethereum narrow this gap by about $350 billion. ... On year-on-year growth too, Ethereum seems to be beating Bitcoin. While Ethereum grew over 900 per cent over the past year, Bitcoin saw a 275 per cent jump.

As a digital currency, Bitcoin is designed with a more limited range of use cases – being the asset of choice for investors looking for a store of value investment. Ethereum, by contrast, is not just a cryptocurrency. It is a network that supports smart contracts: programs running on the blockchain that can execute automatically when certain conditions are met. In connection, Ethereum also hosts Decentralized Finance (DeFi) projects. Smart contracts enable developers to create more advanced functionality than simply sending and receiving cryptocurrency; these programs are what we call decentralized apps, dApps.

There are DeFi dApps that permit the creation of stablecoins (cryptocurrencies whose value is pegged to the U.S. dollar), lend out money to earn interest on coins, and implement automated, advanced investment strategies. One especially fun and unique example of a dApps that runs on the Ethereum blockchain is Crypto Kitties, where users collect, breed, and sell digital cats. This all means there is a lot of money flowing into Ethereum: at least $41 billion (and counting) is currently locked in DeFi projects on the blockchain, compared to just $4 Billion eight months ago. These distinct and advanced features highlight the growth and innovation associated with the Ethereum blockchain, and are part of the reason why some people in the cryptosphere are getting increasingly more excited about the potential that Ether can offer.

When it comes to price, all things considered, it's very possible that Ether will continue to outperform Bitcoin in 2021. Even as Ethereum has not yet fully realized the benefits from the growing popularity of DeFi dApps and NFTs. “The exploding NFT market will directly benefit the value of ETH, and I think that ETH has room to grow until its price encompasses the current excitement," says writer and analyst Noam Levenson.

Remembering that institutional investors have been a vital element in driving up the value of Bitcoin over the past year, moving forward, will more traditional investing giants turn their attention to Ethereum? If that happens, “it would mean that mainstream institutions validate not only the current value of ETH but also the Ethereum ecosystem as a whole,” according to Haohan Xu, CEO of digital asset trading network Apifiny.

In just the past few months, we’ve seen increasing evidence that institutional investors are in fact realizing the value in the Ethereum ecosystem. Grayscale Investments, the world’s largest digital asset manager, added almost $1 billion to their cryptocurrency trusts in a 24-hour period. This included $586.5 million in ETH (as compared to $283.3 million in BTC) — historically, these figures would be more than likely reversed. In addition, according to filings with the Securities and Exchange Commission (SEC), two ETH funds launched by Galaxy Digital (a cryptocurrency asset management firm led by Mike Novogratz, a notorious Bitcoin bull) have thus far received at least $32.1 million in investment. These moves by financial giants like Grayscale and Galaxy further ignite the conversation and represent an increasingly positive sentiment surrounding the second-largest cryptocurrency.