ETH is approaching half of BTC’s market cap, and ethereum miners are on another earnings spree!

Over the past year, Ether’s market cap has grown at a faster rate than Bitcoin’s, highlighting the relative leading performance of ETH and BTC over that period.

According to the latest data, Ether market cap now accounts for 20.4% of the overall cryptocurrency market, while Bitcoin’s dominance has dropped to 41.7%.

Over the past year, Ether’s market cap has grown at a faster rate than Bitcoin’s, highlighting the relative leading performance of ETH and BTC over that period.

ETH is approaching half of BTC's market cap, and ethereum miners are on another earnings spree!

In his latest Blockchain Letter, the cryptocurrency investment manager at Pantera Hedge Fund charts the growth trajectory of ethereum. “The ETH/BTC market capitalization ratio, which has doubled from last year, now has Ether approaching half of Bitcoin’s market capitalization,” the investment manager said.

“We see this as the beginning of a market reassessment of the Ether EIP 1559 proposal and the proof-of-stake (POS) system. These two changes will result in Ether becoming a deflationary asset, with each block not rewarding enough Ether to cover consumption. This means that Ether will be more deflationary than Bitcoin.”

He also believes that the growing DeFi ecosystem combined with the rapid popularity trend suggests that Ether’s market share will continue to grow rapidly relative to Bitcoin’s.

“We think this is just the beginning,” Pantera Fund CEO Dan Morehead tweeted Thursday, referring to the potential of ethereum relative to bitcoin.

Ether’s value has soared 1,750 percent over the past 12 months, although the volatility wasn’t enough to make much of an impact on the Ether uptrend considering Elon Musk’s decision to stop accepting Bitcoin payments for Tesla cars, which triggered the latest market turmoil associated with it.

Ether’s market cap peaked at $500 billion earlier in May, placing it in the top 20 largest assets by market cap and closing in on JPMorgan Chase and Samsung. The cryptocurrency also reached its highest level in three years against bitcoin, adding to the bullish enthusiasm.

As Pantera Capital points out, the firebrand ethereum network is now more valuable than many large banks, with the exception of JPMorgan Chase.

ETH is approaching half of BTC's market cap, and ethereum miners are on another earnings spree!

In addition, ethereum miners once again outpaced bitcoin miners in terms of revenue this past week. Ether miners earned an average of $77 million last week, outpacing bitcoin miners’ $67 million.

The main reason that ethereum miners have been earning more than bitcoin more frequently this year is that the price of ethereum has risen significantly, with bitcoin’s price oscillating over the past few weeks while ethereum continues to rise. From $730 at the beginning of the year, it rose at one point to $4,300 a few days ago.

Another key reason is the network’s skyrocketing transaction fees. Currently, 40% of Ether miners’ revenue comes from Gas fees. But with the Ethernet Improvement Proposal (EIP) 1559 coming into effect this July, a portion of the fees will be sent to the network itself rather than to miners.

So we can see that it is very happy to be an ethereum miner, enjoying both the joy of soaring coin prices from soaring market cap and the enviable excess rewards from ecological dividends!

ETH is approaching half of BTC's market cap, and ethereum miners are on another earnings spree!

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/eth-is-approaching-half-of-btcs-market-cap-and-ethereum-miners-are-on-another-earnings-spree/
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