While Bitcoin has been stuck below the psychological $60,000 mark for over three months, Ethereum continues with its rally. Today, it reached $4372.25 in daily trading. This has allowed it to reach 500 billion in terms of market capitalization. The crypto has already gained over 470% on the year.
We’ve been hearing this 60% Bitcoin song so many times that it has become the market standard for a very long time. The paradigm shift seems inconceivable, but it has been underway since April. Bitcoin’s dominance is largely diminishing in the market.
Two weeks ago, its market share was 50% and ETH’s was 13%. At the time of writing this article, we are witnessing a progression of Ethereum and a regression of BTC. 44.3% for BTC against 19.6% for ETH.
Over the last thirty days, Ethereum has increased by more than 100%. After having crossed the $4000 mark, the $5000 mark should be reached soon by June. Institutional investors are increasingly joining the ranks of Ethereum. ETH futures contracts have increased by more than 570 million over the last month while BTC futures contracts have decreased by 2%.
If there’s one reason why we think ETH has the potential to reach $10,000 by the end of the year, it’s its contribution to the cryptocurrency sector. Ethereum promotes scalability of projects in the crypto industry. Moreover, the majority of DeFi, NFT and DApps projects are undertaken on its blockchain. The European Investment Bank (EIB) has issued its first digital bond of 100 million euros on Ethereum.
Indeed, experts believe that the current price of Ethereum is undervalued given its utility. The Independent newspaper reveals that an assistant professor at University College Dublin, Dr. Paul Ennis believes that Ethereum is undervalued and could reach $10,000 by the end of the year.
We already told you that ETH has already recorded a growth of 470% over the year . As for Bitcoin, its growth will be around 80% in 2021. This means that if you had invested $1000 on ETH, your investment would be around $5700.
However, Ethereum faces two major challenges: transaction fees and network congestion. Despite these problems, its blockchain has not stopped being requested by users. The number of public addresses is breaking a record. In just three days, more than 100,000 new ones have been created.