Bitrabo Editorial
In the past, there was a debate on whether Tron could overtake Ethereum for the second position, but recent developments have put that debate to rest.
Ethereum holds the top spot as the leading smart contracts platform and is continuously being compared to Bitcoin, the most valuable altcoin in the world.
The Potential Flippening of Bitcoin by ETH
An analyst on X has stated that Ethereum has all the potential to surpass Bitcoin as the leading cryptocurrency given time. The analyst pointed out various factors such as Ethereum’s larger user base and the advantages that smart contracts offer, making it well-positioned to overtake Bitcoin.
As per CoinMarketCap data, Bitcoin currently boasts a market capitalization of over $1.3 trillion, with each coin trading at over $68,000. In comparison, Ethereum is holding strong in second place.
Although Ethereum has shown significant growth compared to Bitcoin in the past week, with each coin priced at over $3,800 and a market cap exceeding $465 billion, Bitcoin still holds about three times more value than Ethereum.
The analyst emphasized that Ethereum’s broader user base, driven by developers launching protocols on the platform, including popular ones like Uniswap and Aave, which generate more daily fees than Bitcoin, gives it an advantage.
Additionally, Ethereum is seen as both a store of value and a medium of exchange, offering more utility than Bitcoin, which primarily serves as a transactional layer for moving value across borders.
From an infrastructure perspective, the analyst pointed out that becoming an Ethereum validator is simpler than running a Bitcoin mining rig, highlighting the accessibility for over 1.9 million Ethereum validators compared to the specialized and costly nature of Bitcoin mining.
The Approval of Spot Ethereum ETF Listings and Security Concerns
While the approval of spot Ethereum exchange-traded fund (ETF) listings by the United States Securities and Exchange Commission (SEC) is positive, the classification of ETH as a security or commodity remains ambiguous, unlike Bitcoin, which is clearly defined as a commodity.
Although the SEC has not officially categorized ETH as a security, there is a conflict regarding its classification, as the Commodity Futures Trading Commission (CFTC) considers it a commodity. The approval of form S-1 for registration could potentially solidify ETH’s classification as a commodity.