When you’re number 1, everyone wants to take your spot.
The post Yikes! Is Bitcoin about to get dethroned? appeared first on The Motley Fool Australia. –
Bitcoin (CRYPTO: BTC) remains the best-known cryptocurrency in the world. It also claims the largest market cap. That currently sits at US$689 billion (AU$895 billion), according to data from CoinDesk.
But just because it’s held the number 1 spot since, well, forever, doesn’t mean it might not get dethroned. Indeed, a valid contender is nipping at its heels.
Namely, Ethereum (CRYPTO: ETH).
Ethereum is gaining ground
Ethereum currently has a market cap of US$308 billion. Yes, that’s less than half of Bitcoin’s market valuation. But Ethereum is closing the gap as it’s suffered less during the recent broader crypto sell-off than the world’s number 1 token.
Whether that trend continues is hotly debated among the world’s crypto experts.
Tegan Kline is the co-founder of blockchain software company Edge & Node. As Bloomberg reports, Kline believes Ethereum “will likely exceed Bitcoin at some point in the future, as Ethereum will be superior when it comes to innovation and developer interest”.
Then there are Goldman commodity strategists Mikhail Sprogis and Jeff Currie. The pair don’t believe Bitcoin’s dominant position is written in stone. In fact, they wrote that the token may well “eventually lose its crown as the dominant digital store of value to another cryptocurrency with greater practical use and technological agility”.
Sounding off in support of the world’s current number 1 digital token is Edward Moya, a senior market analyst at Oanda Corp.
According to Moya, “Bitcoin will still remain king of the cryptos.” He added it “had too big of a lead for Ethereum to catch and has one major advantage, a fixed supply of only 21 million coins.”
Bitcoin and Ethereum price snapshot
Bitcoin is enjoying a strong rebound today, up 7.7% in the past 24 hours to US$ 36,887. Year-to-date the price has gained 27%.
Ethereum is also surging today, up 15.1% over 24 hours to US$2,653. Though well down from its mid-May all-time highs of US$4,383, the Ethereum price is up 256% so far in 2021.
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