Could ETH Surpass BTC Amidst New Update and Hype?
Growing exponentially ahead of the significant upgrades already underway, the world’s largest smart contract development platform Ethereum has registered over 5 million unique addresses within just 30 days.
Gathered data shows that between June 6 2021 and July 6, 2021, the network acquired approximately 5.37 million distinctive addresses, making up a rough average of 173, 235 new unique addresses every day for the past month.
The continued increase in Ether demand due to the anticipated EIP 1559 and other impending updates has given rise to speculations that Ethereum could replace Bitcoin as the world’s number one digital currency for the first time. Is the flippening already near?
Ethereum Gains Institutional Trust
Certain leading financial institutions have revealed a measure of faith in Ethereum’s recent growth, including earlier skeptical voices like Goldman Sachs, who have become increasingly bullish on ETH in recent months.
Endorsing the blockchain, U.S. investment bank Goldman Sachs said it considers Ethereum capable of becoming the main store-of-value cryptocurrency in place of Bitcoin.
CEO of cryptocurrency lending platform Celsius Alex Mashinsky said that Ether holdings have exceeded bitcoin on Celsius. A significant feat given the company is responsible for about $17 billion in deposits.
Mashinky thinks the trend is only starting.
“The flippening already happened. Ethereum already surpassed Bitcoin in dollar terms as the total holdings of the Celsius community, and I think that the broader market will follow it in the next year or two. We will see that flippening happening also in the broader market.“
His speculation is not unfounded as just last week, for the first time in crypto history, Ethereum’s total number of daily active addresses surpassed that of Bitcoin, denoting a definite increase in the number of senders and receivers on the Ethereum network.
Ethereum’s Coming Hard Fork Sparks Optimism
Bitcoin’s dwindling hashrate on the back of China’s crackdown on mining pools in its country also comes at an inauspicious time. Other speculations sparking optimism of an Ethereum surprise flippening include reports that the ETH 2.0 update could result in the start of a $40 billion staking industry.
According to a release, giant multinational investment bank JP Morgan believes the staking industry which currently generates an estimated $9 billion annually could see a rapid increase in revenue following the launch of ETH 2.0, after the impending transition to the energy-efficient Proof of Stake system. EIP-1559, one of Ethereum’s most significant upgrades, is scheduled to commence by August 4th.
The firm predicts that the shift could lead to greater adoption of cryptocurrency as a result of the ability to use digital assets to earn rewards through staking.
It’s all a flurry of developments for Ethereum as market tension continues to build. Ethereum’s gas fees have seen a massive reduction in recent days as the crypto world awaits one of the most significant hard forks in a long time. But resulting gas fees are expected to be nothing compared to the present, even despite the reduction.
It’s a whole new world for Ethereum. A more scalable Ethereum. And a more energy-efficient one.
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