Investors have increasingly been focused on the cryptocurrency market, seeking to forecast which digital asset will yield the highest profits this year. While the market is showing signs of improvement, Bitcoin and Ethereum are still vying for supremacy. Bitcoin and Ethereum continue to be the two largest high-caps and the most widely used investments in the cryptocurrency market, despite the possibility of major increases from altcoins.
The Deflationary Benefit of Ethereum
Ethereum is currently in a unique situation, claims Altcoin Daily. Ethereum is a deflationary asset, which is fantastic for investors, as network activity is rising and the supply pie is shrinking.
Eight years into its existence, Ethereum has seen a growth in decentralized applications built on its platform. Some dApps, like DeFi and NFTs, reduce market supply, which increases Ethereum's appeal as an investment.
Blockchain Gaming and NFTs
Similar to NFTs in 2021 and DeFi in 2020, blockchain gaming is quickly emerging as the next big thing in the cryptocurrency industry. The promise of converting in-game objects into NFTs is becoming a reality, and in-game assets are changing into NFTs that users actually own. Given that Vitalik Buterin was motivated to create Ethereum by the video game World of Warcraft, this development could play a crucial role in Ethereum's future success.
Bitcoin’s Timing Cycle
Bitcoin, on the other hand, appears to be moving towards a phase of reaccumulation based on its time cycle. As smaller investors have gradually increased over the previous five years, the number of Bitcoin whales has decreased to its lowest level since 2019. The number of mega whales with more than 10,000 Bitcoin is almost at an all-time high.
Ethereum vs. Bitcoin
Although it is challenging to compare Bitcoin to Ethereum precisely, Ethereum's potential is becoming more and more clear. From the middle of January this year, the Ethereum network has turned into a deflationary asset thanks to NFTs, blockchain gaming, and the acceptance of the most recent upgrade, EIP 1559. The asset may become increasingly rare as acceptance, interest, and trading volume increase on the Ethereum network.
Only time will tell which cryptocurrency will spike the most this year, but in Altcoin Daily's opinion, Ethereum will outperform Bitcoin over the following couple of cycles in terms of returns.
At the time of writing, the value of Bitcoin is $24,754 while the value of Ethereum is $1,682.