Ethereum, the second largest cryptocurrency after Bitcoin, has overtaken Bitcoin for the first time in the number of daily active addresses on its network.
Ethereum registered just over 750,000 active addresses on Friday, around 50,000 more than Bitcoin, according to cryptanalysis firm Santiment. Meanwhile, Bitcoin’s total number of active addresses has dropped 38% in the past three months, data from Bitinfocharts showed, which could be seen as a bearish sign for Bitcoin price.
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The price of Ethereum has risen over the past year and has left the price of Bitcoin in the dust.
“On a day when history was made when Ethereum outperformed Bitcoin in daily active addresses for the first time, Altcoins came into play,” the cryptanalyst Santiment posted alongside the data on Twitter.
Ethereum price, which is up nearly 1,000% year-over-year, has surpassed Bitcoin by a factor of three in the past 12 months as long-awaited upgrades kick in and banks begin to use decentralized finance (DeFi) too experiment – with crypto technology to restore financial products such as loans and insurance and are mostly based on Ethereum’s blockchain. Meanwhile, the NFT (non-fungible token) craze, which saw all kinds of memes, digital art, tweets, and YouTube videos being sold on Ethereum’s blockchain, has further fueled demand for Ethereum.
Last month, the chief investment officer of $ 100 million digital asset investment manager Two Prime predicted that Ethereum will eventually “flip” Bitcoin, predicting, “The benefits of Ethereum alone will surpass anything else.”
The DeFi boom, which is causing the price of Ethereum rivals like Cardano, Binance’s BNB, Polkadot and Solana to skyrocket by many thousands of percent, comes as Ethereum begins its long-awaited transition from Bitcoin’s proof-of-work validation model to the more energetic one. efficient proof-of-stake.
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The price of Ethereum has soared 880% over the past year and has risen along with Bitcoin and most of the others … [+]
This week, Wall Street giant JPMorgan predicted in a report first published by Forbes that moving from Ethereum to Proof-of-Stake will boost crypto adoption and help it be worth $ 40 billion by 2025 to generate.
“Staking not only lowers the opportunity costs of holding cryptocurrencies compared to other asset classes, but in many cases cryptocurrencies also pay a significant nominal and real return,” wrote the analysts at JPMorgan.