Appearing long after Bitcoin, the Ethereum ecosystem has experienced remarkable growth in recent years. This, thanks to the development of an environment conducive to the emergence of thousands of decentralized applications. For many analysts, this aspect is going to be a catalyst for the adoption of Ethereum over the next few years. Thus, the second-largest crypto by capitalization could out-compete the flagship crypto.
An overshoot as soon as the next crypto bull cycle?
According to Mike McGlone, senior macro strategist at Bloomberg, Ethereum is expected to outperform bitcoin in the next bull cycle. The analyst made this known in the latest report on the outlook from the Bloomberg market. In particular, he based his statements on the great resilience shown by Ethereum during the bear market and its ability to offer useful applications. According to him, this resistance of Ethereum and the outperformance expected against mainstream crypto are largely tied to mainstream adoption.
You should know that in recent years, Ethereum has become the darling of institutions, developers and enthusiasts. They believe it is a valuable altcoin with real use cases, including through smart contracts.
“Massive mainstream adoption is our key takeaway when it comes to Ethereum’s breakthrough over Bitcoin. Once the dust settles after some reversion in risky assets amid inflationary pressures, it is more likely that Ethereum will start doing what it has been doing so far, which is outperforming”McGlone said.
Furthermore, the analyst highlighted the demand for Ethereum since last year as a factor that weighs in the balance. In 2021, the second crypto recorded a growth of 22%. It is one of the strongest in the crypto ecosystem. On the other hand, Bloomberg highlights Ethereum’s move to Proof-of-Stake (PoS), which is more environmentally friendly. But the pressure to reduce the carbon footprint continues. This serves Bitcoin in the head-to-head related to adoption.
Considering the benefits of Ethereum, Ethereum’s growth is expected to continue over the next few years, according to Bloomberg estimates. Furthermore, while bitcoin (BTC) and ether (ETH) have fallen by around 76% and 75%, since the end of 2021, the volatility annual fee of the latter is about 1.3 times that of bitcoin. This is proof of the dynamism surrounding its adoption.
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