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Will Ether overtake Bitcoin?

Photo of: Joseph Stone
by Joseph Stone

In a market at half-mast, observers still predict a reversal of the balance of power between Ethereum and Bitcoin, like Alex Mashinsky of Celsius Network.

On July 13, Bitcoin’s 24-hour price fell 3.56% to about $33,000. Its market capitalization is therefore close to 621 billion dollars. The price of Ether, meanwhile, is down 5.8% to $ 2027 and a capitalization of 235 billion.

Bitcoin continues to outweigh Ethereum by almost three to one. But is this balance of power irreversible? Several voices among the crypto-sphere dispute it, despite years of BTC dominance.

Alex Mashinsky, the CEO of Celsius Network, also agrees with this assumption. According to the expert, the turnaround is even already at work. In an interview with Kitco News, the executive, therefore, considers that Ether will overtake Bitcoin in terms of dollar capitalization.

“We manage about $17 billion in deposits or customer tokens, and the number one coin held in terms of dollars is Ethereum,” he says to support this still very hypothetical scenario.

But for Alex Mashinsky, confirmation of this scenario is not 10 years away. On the contrary, he predicts that the capitalization of ETH will exceed that of BTC as early as 2022 or 2023. However, this assumes an explosion in the price of Ether.

The same boss recently predicted that Bitcoin would reach $160,000 by 2021. In plain English, this means a spike in the cryptocurrency’s total capitalization. So to compete, Ether must grow at an even greater rate.

Ether’s strength? Yield farming.
“The turnaround has already taken place. Ethereum has already surpassed Bitcoin in terms of dollars among the total holdings of the Celsius community. And I think the broader market will follow in the next year or two,” Mashinsky insists.

In the current context, barring a sudden collapse of BTC, this hypothesis is not obvious. It is quite different for the boss of Celsius. And the reason is simple: the respective uses of these two crypto-assets.

Bitcoin’s main use is as a store of value. Ether is the king of yield farming, consisting of blocking crypto in return for returns. Now, this use offers the greatest potential, defends Mashinsky.

“Yield is an implementation that just has a larger user base. So I think over time, Ethereum’s adoption will be broader than Bitcoin’s. But clearly, both are remarkable applications and remarkable blockchains, and we will see broad adoption of both. It’s just that one will outpace the other,” he concludes.