A Crypto Analyst Says Ethereum Might Pass Bitcoin

A crypto expert and analyst said that Ethereum's native token Ether (ETH) might pass Bitcoin, the largest cryptocurrency by market cap.

Ethereum to pass Bitcoin soon
Ethereum & Bitcoin

The CEO of crypto analytics firm CryptoQuant has admitted he thinks Ethereum Improvement Proposal (EIP) 1559 would “be a game-changer." Not only this, he said the EIP or the London Hard Fork could help Ethereum overtake Bitcoin’s market cap in the long term.

With EIP 1559, Ethereum reforms its fee market with two keys changes, including replacing the current gas limit with two values (one for a "long-term average target" and another with a hard "per-block cap").

Also, it would add a base fee needed to be paid in transactions that will be consumed instead of paid to miners (it’s adjusted on a block-by-block basis to hold “average block gas usage” at a “level close to the current gas limit”).

Based on an interview with Ki Young Ju, he noted,

"Reducing transaction fees on Ethereum can solve the blockchain trilemma by improving scalability, security, and decentralization."

In addition, Young Ju added that the decentralized finance (DeFi) services and non-fungible token (NFT) marketplaces are running with unreasonably high fees.

"If these services were to operate in a low transaction fee environment, he said, network activity would rise, and along with it would the price of the crypto," he said. Moreover, he also highlighted Ethereum and blue-chip DeFi tokens potential for breaking away from Bitcoin’s influence.

Ki Young Ju said that Ethereum might flip the Bitcoin market cap in the long term. "But not this year," he added. Also, this bull run has been driven by the narrative organizations coming to the crypto market. "This trend may last to next year. Without institutional demand, Ethereum can’t flip the BTC market cap, Young Ju noted.