Pantera Capital: Ether Market Cap to Bitcoin Market Cap Ratio Doubled Last Year

Ether market cap now accounts for 19.2% of the overall cryptocurrency market, while Bitcoin’s dominance has fallen to 40.7%.

Pantera Capital: Ether Market Cap to Bitcoin Market Cap Ratio Doubled Last Year

Article by SAM BOURGI

Over the past year, ethereum’s market cap has grown much faster than bitcoin’s, highlighting ethereum’s outstanding performance relative to bitcoin over that time.

In its latest Blockchain Letter, cryptocurrency investment manager Pantera Capital charts the growth trajectory of ethereum. “The ratio of ethereum’s market cap to that of bitcoin has doubled in the last year,” Pantera Capital says, and adding.

We see this as the beginning of a market re-evaluation of Ether’s EIP 1559 and proof of stake. These two changes will result in Ether becoming a deflationary asset. This means that Ether will become a more deflationary asset than Bitcoin.

Pantera Capital: Ether Market Cap to Bitcoin Market Cap Ratio Doubled Last Year

Ether’s market cap continues to grow as a percentage of bitcoin Source: Pantera Capital

Pantera believes that the combination of growing DeFi use cases and rapid adoption suggests that Ether’s market share will continue to grow relative to Bitcoin.

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

We have written extensively about the bullishness of Ether, Polkadot and DeFi tokens relative to other blockchains. The ratio of Ether’s market cap to Bitcoin’s market cap has doubled in the last year. We think this is just the beginning. — Dan Morehead (@dan_pantera) May 13, 2021
Ether’s value has risen 1,750 percent in the last 12 months, even considering the latest market turmoil related to Elon Musk’s decision to stop accepting bitcoin to pay for Tesla cars.

Earlier this week, Ether’s market cap peaked at $500 billion, placing it among the global corporate elite. Ether also reached a three-year high against bitcoin, adding to the bullish fervor. As Pantera Capital points out, the ethereum developer network is now more valuable than all major banks except JPMorgan Chase.

Bitcoin has also experienced an excellent 12 months, soaring from around $9,000 in May 2020 to more than $64,000 in April.

On May 13, Bitcoin hovered above $48,400, down 10.9% on the day. Meanwhile, ethereum fell 10% to $3,635.

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