over the past weeks Ethereum Ether is trading around $ 3,400 whilst Bitcoin has struggled to rebound to highs.
Many people predict that Ether can “overtake” Bitcoin to become the largest cryptocurrency in the world. Recently, JPMorgan Bank has also voiced the view that Ethereum can outperform Bitcoin, citing Ethereum as the “backbone of the cryptocurrency economy.”
Infinite Market Cap estimates that Ethereum’s total market cap has surpassed Walt Disney and Bank of America to $ 388.82 billion.
Coin Telegraph gave many reasons for the emergence of Ethereum. Last week, the European Investment Bank (EIB), along with institutions such as Goldman Sachs, announced the launch of an electronic bond worth $ 121 million on the Ethereum network, which companies can use to use ether to buy bonds. has a term of 2 years.
also, the Ethereum blockchain is the basis of the NFT (irreplaceable token) fever when buying and selling digital art, as well as for the deFi (decentralized financing) movement. The higher the transactional activity associated with these two trends, the more valuable the ether contributed.
The next Ethereum update, which took place in July, is in line with investors’ expectations of ETH 2.0. The updated version of the Ethereum network will move from the PoW (Proof of Work) algorithm to the PoS (Proof of Stake) consensus algorithm. This new feature promises lower transaction fees and reduced ether reward amounts for miners.
Quoting David Hoffman, a member of the Bankless company, comparing Ethereum updates to Bitcoin’s “halving” every four years. Then the Bitcoin reward will be halved for the miners, but at the same time, the price of Bitcoin will increase sharply.