And not even Jack Dorsey can stop it from toppling Bitcoin as ruler of the crypto roost
“No, I am not buying Ethereum.”
Jack Dorsey’s words, verbatim. Well, not quite verbatim, but the founder of one of the biggest social media platforms ever has been pretty adamant with his responses when asked about his crypto strategy.
And yet, something strange is happening with Ethereum, and not even Dorsey’s lack of enthusiasm seems to be killing it. Ethereum has registered more active users than Bitcoin for the first time, according to Reuters.
Big news, especially as it comes days after Jack Dorsey reiterated his seeming bias against the cryptocurrency for the umpteenth time.
But things get curiouser and curiouser – Dorsey’s statement was made despite Twitter actually giving a big vote of confidence to Ethereum. On Wednesday, in fact, the social media platform announced a giveaway via Rarible, one of the main players in terms of NFT trading via the Ethereum blockchain.
Needless to say, these apparent double standards have the entire crypto community confused. So, is Ethereum good enough for the Twittersphere but not for the man himself, seems to be the general question. And if the answer to that is yes, how very dare he?
Cinneamhaim Ventures partner Adam Cochran was the most vocal critic, calling out Dorsey’s approach for his “mental gymnastics”. The implication being, one can only surmise, that the logic behind the decision is somewhat mysterious.
More active addresses than Bitcoin
Well, Cochran needn’t worry about whether Dorsey’s lack of interest will do for Ethereum the opposite of what Elon Musk did for baby dogecoin – leading to a slide, rather than a soar. The news that Ethereum has now surpassed Bitcoin in terms of daily active addresses is being interpreted as a definite sign that the crypto community is now favouring Ethereum, rather than the more classic BTC.
All this points towards a definite turning of the tide – Bitcoin has always been assumed to be the poster child for the crypto verse. The hierarchy had never been put in dispute. There is Bitcoin, at the top of the pyramid, and then there’s everything else trailing behind.
Until now, with the pronouncements from crypto analysts being pretty much unanimous: it is not just the number of active users that is on an upward trend. We can also expect ETH likely to outperform BTC in terms of value, through July.
How is this possible, you may ask, especially since the price has been on a steady decline since the beginning of May? The reason, analysts suggest, is that Ethereum’s pattern is bullish, so get ready for the long haul.
Moreover, the cryptocurrency seems to have managed to establish its bullish form even while the rest of the crypto sphere was experiencing a crash – in fact, as more investors went bullish on it, Ethereum is up by 230% this year, reaching a market capitalization of $500 billion and easily outperforming all other cryptocurrencies.
Feeling sceptical? We feel you, so allow us to show you the maths behind it: while true that Bitcoin still boasts the largest market capitalization at over $64,000, Ethereum has registered the most growth – 230% versus Bitcoin’s 38%. Such is the bull effect, which could very well see Ethereum reclaiming all lost value within the coming months, and potentially exceeding its previous records.
The reasons for this positive outlook are various. Bitcoin is currently under fire from all quarters, with environmental considerations likely to lead to a massive rehaul in mining processes.
Ethereum is facing none of this, with the added benefit that the platform is considered a lot more versatile than its Bitcoin counterpart. In fact, it fast established itself as the platform of choice for NFT trading, de-fi transactions, auctions and so forth, amassing over 3,000 decentralized Apps on its blockchain.
Moreover, the long-promised ETH 2.0 network upgrade that is now slated for a 2022 finalization will increase scalability and speed, upgrading from Proof of Work to Proof of Stake – a consensus mechanism that requires significantly less energy. This, while Bitcoin still languishes on its Proof of Work protocol, making verification dependent on how much processing power a miner can bring to the network, while wreaking environmental havoc.
These are all things that point towards Ethereum playing a stronger long game than Bitcoin. In view of all this, it is hardly any wonder that JP Morgan Chase analysts are predicting that ETH 2.0 will trigger a $40 billion industry boom.
Ethereum Music Festival
Meantime, fans of Ethereum who also enjoy a good music festival have something else going on for them – the first Ethereum Music Festival has been slated for July 11.
The event, called ‘To The Moon’, will take place online, starting at 6:00 PM UTC. Hosted by Ethereum-based computer game Decentraland, it is a collaboration with NFT marketplace KnownOrigin, Illumino and BEAR NFT. Performers include artists like Ookay, SNBRN, Fred Thurst, Autograf, and Win and Woo, while attendees have been promised a number of exclusive NFT goodies, as well as a virtual POAP token (Proof of Attendance Protocol) to show off on their Decentraland profile.
Seems like ‘To The Moon’ may not just be the name of a festival, in the case of Ethereum.
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