Ethereum Just Outperformed Bitcoin In Key Milestone As Major Upgrades Help Raise Its Price
Ethereum, the second largest cryptocurrency after bitcoin, for the first time surpassed bitcoin in the number of daily active addresses on its network.
Ethereum registered just over 750,000 active addresses on Friday, 50,000 more than bitcoin, according to crypto analysis firm Santiment. Meanwhile, the total number of active bitcoin addresses has fallen 38% over the past three months, data from Bitinfocharts revealed, which could be seen as a bearish sign for the price of bitcoin.
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“On a day when history was written with Ethereum first surpassing bitcoin in daily active addresses, altcoins came into play,” crypto analysis firm Santiment told Twitter next to the data.
The price of ethereum, up nearly 1000% from the same time period last year, has outperformed bitcoin over the past 12 months by a factor of three as long-awaited upgrades are underway. courses and as banks begin to experiment with decentralized finance (DeFi) – using crypto technology to recreate financial products such as loans and insurance and mostly built on the Ethereum blockchain. Meanwhile, the NFT (non-fungible token) craze that has seen all manner of memes, digital artwork, tweets, and YouTube videos sold through 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 would eventually ‘flip’ bitcoin, predicting, ‘The utility of Ethereum alone will exceed everything else”.
DeFi’s boom, helping the price of Ethereum rivals such as Cardano, Binance’s BNB, Polkadot and Solana to explode by several thousand percent, comes as Ethereum begins its long-awaited transition from the proof-of-proof validation model. Bitcoin’s work towards the more energetic model. proof of effective stake.
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This week, Wall Street giant JPMorgan, in a report first revealed by Forbes, predicts that Ethereum’s move to proof of stake will drive crypto adoption and help generate $ 40 billion in value by 2025.
“Not only does staking reduce the opportunity cost of owning cryptocurrency relative to other asset classes, but in many cases, cryptocurrencies earn significant nominal and real returns,” wrote JPMorgan analysts.