Ian Balina, founder and CEO of Token Metrics – a data-driven research platform for crypto – is confident that Ethereum’s market cap will surpass Bitcoin’s in the next decade. At press time, Bitcoin is the most valuable digital commodity with a market capitalization of $ 129 billion. This makes BTC the most dominant with a market share of 67%. On the other hand, ETH has a market capitalization of $ 14 billion and ranks second.
Rise of DeFi and stablecoins a big plus
Forecast: Ethereum will outperform Bitcoin in market capitalization in the 2020s.
It is inevitable.
Sorry $ BTC maximalists. $ ETH wins in the end.
– Ian Balina ???? (@DiaryofaMadeMan) December 31, 2019
Ian believes that while bitcoin is great, it won’t continue enjoying the first mover advantage of the past decade. Instead, he sees multiple trends converging and with developers choosing Ethereum, innovation follows the platform. Plus, the lack of leadership in Bitcoin coupled with the steady growth of DeFi – or Open Finance – and stable coins is a big plus for Ethereum.
“I see several converging trends. Bitcoin is great but can’t be relied on to have a first mover advantage for the next 10 years. Developers have adopted Ethereum. That said, innovation has embraced Ethereum. “
If anything, most stablecoins are built on top of Ethereum. There are over 60 stablecoins in the market and over 120 are in development. The presence of built-in logic and regulation and the fact that the tokens are more compatible with the existing infrastructure due to the increasing spread of the ERC20 tokens give it a competitive advantage.
Don’t forget that Ethereum is already bringing a lot more innovation and will continue to establish itself through stablecoins, DeFi, NFTs and DEXs. I used @uniswap to get $ MKR and test liquidity pools which are all nice and decentralized. pic.twitter.com/lySJoZQgA2
– Crypto Art (@BitcoinCartoon) January 1, 2020
Ethereum is an improvement on Bitcoin
Ethereum is the second most important cryptocurrency project and enjoys the advantage of a first mover in some aspects like Bitcoin as it is the pioneering platform for smart contracts that has brought about the tokenization of assets and other possibilities missing in Bitcoin.
Bitcoin in its pure form aims to cut money transfer costs, eliminate third parties i.e. banks, and regain control of the masses. On the other hand, Ethereum introduced smart contracts that digitized and automated traditional contracts.
Developed with its programming language, Ethereum Solidity is also the most active and attracts more developers than Bitcoin and competitors like Tron and EOS. The latter are given higher ratings by the Chinese Center for Information and Industrial Development (CCID), a research institute of the Information Technology Ministry of Industry.
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The content presented may contain the author’s personal opinion and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or the publication assumes no responsibility for your personal financial loss.
About the author
Dalmas is a very active cryptocurrency content creator and a respected technical analyst. He is passionate about blockchain technology and the futuristic potential of cryptocurrencies, and enjoys the opportunity to train Bitcoin enthusiasts through his written insights and analysis of coin price tables. Follow him on @dalmas_ngetich