市场见解

Why the Ethereum (CRYPTO:ETH) price is trouncing Bitcoin’s gains

More investors are turning to cryptos with marketable use cases.
The post Why the Ethereum (CRYPTO:ETH) price is trouncing Bitcoin’s gains appeared first on The Motley Fool Australia. –

The Ethereum (CRYPTO: ETH) price is rebounding, up 1.7% over the past 24 hours. One Ether is trading for US$2,844 (AU$3,949).

Bitcoin (CRYPTO: BTC), still by far the world’s biggest crypto by market valuation, is back in the green as well. Bitcoin is up 1.3% since this time yesterday, trading for US$41,491.

That gives Bitcoin a market cap of US$781 billion.

At the current Ethereum price, its market cap stands at US$334 billion.

While that’s still less than half of Bitcoin’s total market value, crypto analysts are speculating that Ether may well overtake Bitcoin in the not too distant future.

The case for smart contracts

The Ethereum price has been a much stronger performer than Bitcoin over the past year.

Much of that, crypto analysts surmise, is due to the fact that the Ethereum network has valuable real life applications for business and finance. Many of which remain untapped.

Bitcoin, on the other hand, is limited to payment transactions. And, of course, you can hold onto it as well in hopes of making a profit.

Financial TikTok influencer Mason Versluis, aka “Crypto Mason”, doesn’t see much of a future for Bitcoin. But Versluis, who has some half a million followers on his account, is far more optimistic on other tokens with real life uses, like Ether.

According to Versluis (quoted by Business Insider):

It’s got to have use cases, meaning: does this token do nothing? Am I just buying this token because I think it’s going to go up in value? That is what I am personally invested in, just because of the potential – they actually do something. Ethereum has so many decentralised applications built on it.

The decentralised applications he’s talking about here make use of smart contracts so they can be self-executing.

So what’s a smart contract?

According to CoinDesk:

Smart contracts are code-based programs that are stored on the Ethereum blockchain and automatically carry out certain functions when predetermined conditions are met. This can be anything from sending a transaction when a certain event takes place, or loaning funds once collateral is deposited into a designated wallet.

With the digitisation of data racing ahead, the use cases described above could well be one reason investors have been driving the Ethereum price sharply higher.

Ethereum price snapshot

As an important reminder of the volatility involved with cryptos, the Ethereum price is still down 35% from its all-time high of US$4,379, reached on 12 May.

However, it has been a strong performer over the past full year, well outpacing Bitcoin.

The Ethereum price has gained 707% over the past 12 months, compared to a 288% gain for Bitcoin.

Year-to-date Ether has gained 291%, compared to a 43% gain for Bitcoin so far in 2021.

The post Why the Ethereum (CRYPTO:ETH) price is trouncing Bitcoin’s gains appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Why inflation angst is driving more Aussie investors to Bitcoin

Will Ethereum overtake Bitcoin?

China brings the hammer down on Bitcoin and all other crypto transactions

AMP Capital’s chief economist on the future of Bitcoin and altcoins

Not even Bitcoin and Dogecoin are immune to the Evergrande fallout

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

随时随地,交易世界!

移动APP平台,拥有 12 个市场的 50,000 多种全球上市证券(全球市值超过 70%),直接在您的 Android 或 iOS 设备上即可操作。

与独有的交易理念和投资分析工具相结合,帮助您在我们 12 个全球市场中的几乎所有金融工具上找到可操作的见解,从而帮助您优化交易策略。

推荐给您的朋友

向您的朋友推荐Monex并赠予他们免费使用我们交易工具的机会

我们尊重您的隐私,只会向您的朋友发送一封邮件 

与您的朋友分享

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!