Does Ethereum Have a Stranglehold as a Blockchain Ecosystem?

As cryptocurrency continues to forge a solid identity in the 21st century, many experts are looking to the future in an attempt to work out the next best investment. 

As many crypto users will be aware, this is not an altogether easy task. Predicting cryptocurrency is like predicting the waves of a raging ocean. No one knows how the wind will change or how fierce the tide will turn. Most of the time, it is a case of watching the market long enough, taking an educated guess of where the next coin might rise or fall. 

This is easier with some coins rather than others. Tokens like Bitcoin and Ethereum, for instance, are potentially more of a solid investment due to their notoriety. There are a number of experts forming opinions on the two biggest coins in the market, and their fluctuations have been well documented. Altcoins, on the other hand – and specifically new altcoins – are a little harder to pin down.

Bitcoin VS Ethereum

For an investor who is careful with their portfolio, then it is probably a case of one coin versus the other. In this instance: Bitcoin or Ethereum. It’s a difficult choice, especially with the relative upgrades that each has undergone over the last few years.

This is why, as mentioned previously, many experts are looking to the future for their answers rather than the present or the past. More specifically, they are looking to see which coin has a stranglehold on the market. 

Which looks the most likely to cut off the air of its competition and forge itself into the most desirable coin? Which has undertaken the upgrades which will make it the true alternative to fiat currency? 

Ethereum As A Market Leader

While both Bitcoin and Ethereum have a solid chance of cutting off competition, it looks like Ethereum has been pinpointed as the coin with the strongest stranglehold. As of September 2022, it has undergone what is known as the “merge”. This has changed Ethereum from a proof-of-work to a proof-of-stake system, which is not only a more efficient and practical system but also more sustainable and eco-friendly than its counterparts.

Ethereum has also introduced the concept of sharding, which is a multiphase upgrade that provides secure distribution of data storage, making the platform far easier to operate for nodes, as well as more scalable and secure. It was thought at the time that this upgrade could prove to be a leap too far for the platform. In terms of POS, many crypto users were not only accustomed to POW but enjoyed the challenge and reward of mining blocks and earning coins in return. Without this system, it was thought that the platform could perform poorly in the future or potentially fall apart altogether.

The Merge And The Success

However, that didn’t happen. Whilst Ethereum is still far from its last peak – the coin is down 75% from its peak of $4,800 in November 2021 – the price of Ethereum remains steady after the merge. 

In fact, Bloomberg intelligence analyst Mike McGlone predicts that it will end this year between $4,000 and $4,500, with crypto news outlet Coinpedia being even more bullish with a prediction of $6,500 to $7,500. On top of this, experts are predicting that it will outperform Bitcoin in 2023, with a likelihood that it will eventually surpass the coin in the medium to the long term – probably between 2030-2040.

While these theories are a little outlandish, they are indicative of the overall sentiment in the market. That Ethereum has a stranglehold not only as a coin but as a blockchain ecosystem. Here are some of the reasons why experts may have come to this:

• Ethereum Is An Ecosystem

Ethereum is more than just a coin. It is an entire ecosystem, complete with smart contracts, dApps and communities. In this way, Ethereum is offering far more of an interconnection across the world for businesses and individuals to come together and create. Bitcoin, on the other hand, is, first and foremost, a digitised currency. 

• Ethereum Offers Optimum Tokenization

The concept of tokenization, in many ways, best fits Ethereum, which has the most use cases and interest in investment. It is said that, by 2027, every country in the world will use blockchain technology for up to 10% of its GDP, and it is easiest to see Ethereum leading on this front.

• Ethereum Is A Hub For Creation

There are a number of interesting new projects that are being built on Ethereum every day. These include games, collectables, microgrids, healthcare records, and much more. In this way, it has become a hub for creation and can completely revolutionise digitised concepts in the future. It is predicted that the world will phase into Web3 as early as 2030, and Ethereum seems to be ahead of the curve in terms of preparations. 

• Ethereum Is More Sustainable

Although this has been mentioned already, it is an important part of Ethereum’s growth. The POS system is not only more efficient, but it signifies Ethereum as a leading coin in terms of sustainability. This will be important in the future, considering the growing awareness and attitude toward sustainable products.

• Ethereum Has The Best Technology

Many experts will make their choice based on technology alone. Ethereum’s network beats many other coins on the market, as it has the capacity to store value, pay for products, program smart contracts, tokenize assets, create dApps and more. It is so much more than a payment system. It is a digital world which has a potential which is not even close to being tapped yet.

Is The Air Too Tight For Bitcoin?

With all this being said, it looks certain that Ethereum has a current stranglehold in the market. It has a bucketload of potential and a number of arms to its system, which suggest it will be successful in its adaptation to Web3. As mentioned previously, however, the crypto market is hard to predict. Whilst, as of right now, it can be argued that Ethereum has a tight grip on things, that doesn’t mean it is cutting off the air of its rivals entirely. 

The price of Bitcoin remains much higher than Ethereum, and there are plenty of bullish predictions which show it reaching new peaks in the future. As ever with the entire crypto market, it is a case of looking at how high the waves are building and which have the potential to reach the highest. Both Bitcoin and Ethereum can be argued as good investments, so think responsibility about your portfolio and always have a vision of the future when making your decision.