Ethereum’s Rise: Could It Surpass Bitcoin in 2024?
Ethereum (ETH), the leading altcoin, continues to strengthen its position, outpacing Bitcoin in growth dynamics over the past month. Andre Dago, Head of Research at ETC Group, even suggested that Ethereum could become the market leader in the coming year, surpassing Bitcoin. Dago emphasized Ethereum’s high status as the most popular platform for creating decentralized applications and deploying smart contracts.
Dago disclosed the results of a recent ETC Group study, highlighting the impact of Ethereum’s upgrade proposal, EIP-1559, implemented in the summer of 2021. The upgrade, featuring a new “burning mechanism” for coins, could be a significant catalyst for Ethereum’s long-term growth. Dago noted that the systematic reduction of the market supply, combined with high staking rewards, could eventually allow Ethereum to surpass Bitcoin.
The Ethereum ecosystem continues to actively evolve in terms of scalability, thanks to various Layer 2 solutions. This adds to Ethereum’s investment attractiveness, reinforcing its global market status.
It’s noteworthy that opinions on this matter vary among experts. For instance, David Schwed, Chief Operating Officer at Holborn, believes that Bitcoin’s established role as the flagship cryptocurrency will prevent Ethereum from becoming the market leader for a long time.
However, in the last month, many altcoins have outperformed Bitcoin in terms of growth dynamics. This is attributed to Bitcoin being in a consolidation phase for an extended period. Concurrently, its dominance index is decreasing, currently estimated at 51%, compared to around 55% a few weeks ago.
