Arca’s Strategist Says Ethereum Could Still Flip Bitcoin
Bloomberg cites Bodhi Pinkner, an analyst at Arca, as saying that the possibility of Ethereum replacing Bitcoin is “quite feasible.” Pinkner anticipated that the second-largest token will lose value after the expected merger in September. After several years of waiting, Ethereum will toggle from proof-of-work to proof-of-stake. Lucas Outumuro, a strategist at the cryptocurrency research group IntoTheBlock, said earlier in July that the amount of the second-largest cryptos will be between -0.5 percent and -4.5 percent.
This means that it will become harder to find Ethereum, giving it an advantage over Bitcoin. The price of the cryptocurrency will go up because the number of coins in circulation will continue to drop.
As per data from CoinMarketCap, the value of the cryptos on the main spot prices is $1,697 right now. The transaction rate between ETH and BTC has gone up nearly 34% in July because of the long-awaited merger update. Still, the pair has fallen over 13% from its peak of 0.82 at the beginning of the year. It’s also important to keep in mind that the value of the ETH/BTC pair has dropped by up to 54% since June 2017, when it hit a record high.
Pinkner believes that the way the economy is right now could be good for Ethereum. Since the last leg of 2021, the Federal Reserve has been working hard to limit the amount of money in circulation. This has had a big effect on the prices of the most popular cryptocurrencies. Since the beginning of 2021, Ethereum and other widely known cryptocurrencies have made Bitcoin’s market share go down. The top cryptocurrency makes up 41% of the total value of the market.