Ether to overtake Bitcoin? The logic of Ether’s continued rise?

Without Ether, we don’t see the future of the crypto world.

Ether to overtake Bitcoin? The logic of Ether's continued rise?

It seems that more and more people on the internet these days are discussing the possibility of Ether overtaking Bitcoin.

The reason for this phenomenon is that I think it may be related to two factors.

One is that the ecology above Ether is getting bigger and bigger; the second is that the price rise of Ether will have a mechanism factor.

Let’s look at the ecological factor first, which mainly includes the application level and the technical level.

From the application level, the two biggest application areas are DeFi and NFT.

The lock value of DeFi has reached $85 billion at the time of writing, and it will be close to breaking $100 billion, which shows that DeFi has been moving more and more towards a formed ecology.

Accordingly, we can say that Ether has officially developed its own unique and complete application scenario vertically from a platform that only had the function of coin issuance and coin speculation in 2017.

Even though DeFi is developing like a blaze, it is still restricted to a certain small circle, while NFT is more influential compared to DeFi. We see a large number of people from different fields outside the circle (such as artists, sports stars, acting celebrities, auction houses, etc.) actively active in this field, and the activity of these people will in turn drive their fans into this field. This ecology of Ether is coming horizontally into the lives of more and more people.

This vertical and horizontal expansion has finally enabled Ether to become a platform for the crypto world, becoming more and more three-dimensional and tense.

If we look at the above from the application level, if we look at the technical level, various EVM-enabled eco-chains (such as Fantom, Coinan’s BSC, and Firecoin’s HECO) and various second-layer extensions (such as Matic) are sharing the burden of Ether, so that Ether does not stifle the development of its own ecology due to the high fees. Although they are now temporarily diverting Ether’s traffic, it is conceivable that once Ether’s fee problem is alleviated, the applications and users in these ecologies will still come back to Ether or around Ether in some form.

So the development of these associated ecologies is actually resonating with the ethereum ecology, and in a way, they are expanding the ethereum ecology as well.

We can say that if we look at the ecology alone, we can’t see any other chain that has the scale and vitality of Ether at the moment. It can be said that the direction of Ether is also the direction of the whole cryptocurrency, which represents the future, the trend, the value orientation and the new consensus.

In this sense, the development of Ether ecology and Ether itself beyond Bitcoin is certain.

This viewpoint was actually shared by me in an article last year. If we see Bitcoin as gold and Ether as oil. The future development trend of Ether is easy to understand: the volume of oil is definitely larger than gold, because oil carries human industrial civilization and carries every minute of the world’s operation. Without oil, we cannot see the industrial civilization today; without Ether, we cannot see the future of the crypto world.

These are comparisons between bitcoin and ethereum in terms of ecological development, but the other thing that is causing a lot of concern I think is still the price. The most important impact it will have, as I have shared many times on this topic, is that it will change Ether from its current inflationary state to a future deflationary state, and most conservatively, even without deflation, the total number of Ether will remain between 100 and 130 million.

If Ether was deflationary 4 years ago, we would immediately think: deflationary Ether would be finished once the price is high ecologically, so Ether then did not have such a price imagination. But today is different, we have various associated ecosystem chains and second layer extensions. In those ecological chains and extensions, the ecological applications of Ether can travel unhindered, and the transaction fee is close to 0. Therefore, today’s Ether is somehow free from the shackles of price, and 1559 is the fundamental mechanism to make the price rise.

At this point, the upside of Ether price has been completely opened.

The development of ecology is vigorous, and the price increase is not shackled, so it is only natural for people to have great imagination.

So will the market value of Ether exceed that of Bitcoin? I think it will. That’s not to say I’m down on bitcoin, of course. Bitcoin’s position can never be shaken, but if we look into the future and look at it with an open and inclusive mind, if Ether’s market cap doesn’t surpass Bitcoin’s, then where is the future of the crypto world?

If we look at today’s price, $50,000 for Bitcoin, for Ether to surpass Bitcoin in terms of market cap, it should be at least $10,000.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-15 22:08
Next 2021-05-15 22:13

Related articles