Is Ethereum Becoming a Tougher Coin?
Technical charts show that transaction volumes for ETH, for the first time in a while, are surpassing those of bitcoin, and that there’s far more activity as of late surrounding the world’s second primary form of crypto. How can this be, and will this enable ETH to gain price momentum and potentially outdo bitcoin in virtually every aspect?
While Ethereum is no doubt a strong coin, this is unlikely given that it doesn’t possess the size and prowess of bitcoin. BTC is the world’s oldest coin, so the bottom line is that it has had more time to adapt and grow. Bitcoin emerged through a 2008 whitepaper, while Ethereum didn’t come about until seven years later in 2015.
It’s a shame to consider this, really, considering just how much Ethereum has to offer. For example, the currency has become one of – if not the most – popular blockchain platforms to build new coins and decentralized applications (dApps) on. The blockchain’s smart contract capabilities has made it a promising haven for the establishment of new protocols and industry tokens, but there’s a serious problem with this.
Ethereum, according to co-founder Vitalik Buterin, is now congested with traffic. As a result, it’s losing its scalability which is resulting in very high gas fees and slow transaction times. These were problems that Ethereum was designed to improve upon.
Bitcoin itself, given its age and lack of agility when compared to newer altcoins, had been suffering from extreme congestion. The blockchain often took several days to complete transactions, whereas Ethereum needed mere hours or in certain instances, minutes, to complete financial transfers.
Now, it seems like Ethereum is changing for the worse, and it’s beginning to share in bitcoin’s problems – not improve on them. The currency is falling into the “old” category. It’s been around for nearly five years and probably can’t keep up with the speeds of applications like TRON or EOS.
Bitcoin Is Still a Powerhouse
As a result, many developers are beginning to turn their backs on Ethereum as the prime tool for building decentralized apps. They are instead turning to its altcoin cousins like EOS to get the job done.
In addition, Ethereum does not possess the market cap that bitcoin has, and while this new activity could improve its price, let’s look at things realistically. Ethereum, as it stands, is trading for only about $130 at press time, whereas bitcoin is trading for well over $7,000. Even if Ethereum was desperate to overtake bitcoin, it would require many more years to do so. It’s price simply doesn’t compare.