According to the latest data, Ethereum market capitalization now accounts for 20.4% of the entire cryptocurrency market, while Bitcoin’s dominance has dropped to 41.7%.
Ethereum’s market capitalization has grown at a faster rate than Bitcoin’s over the past year, highlighting ETH’s relative outperformance over BTC over that period.
In his latest "Blockchain Letter," the Pantera hedge fund cryptocurrency investment manager charts Ethereum's growth trajectory. The investment manager said: "The ETH/BTC market value ratio has doubled compared to last year, and now Ethereum is approaching half of Bitcoin's market value."
“We believe this is the beginning of a market reassessment of Ethereum’s EIP 1559 and proof-of-stake (POS). These two changes will cause Ethereum to become a deflationary asset, and the ETH rewarded per block will not be enough to cover consumption. This means Ethereum will be more deflationary than Bitcoin.”
He also believes that the combination of the growing DeFi ecosystem and the trend of rapid adoption indicates that Ethereum’s market share will continue to grow rapidly relative to Bitcoin’s.
“We think this is just the beginning,” Pantera Fund CEO Dan Morehead tweeted Thursday, referring to ethereum’s potential relative to bitcoin.
The value of ether has soared 1,750% in the past 12 months, despite the latest market turmoil related to Elon Musk's decision to stop accepting bitcoin payments in Tesla vehicles. The volatility is not enough to have much impact on the Ethereum uptrend.
Ethereum's market capitalization peaked at $500 billion earlier in May, placing it among the top 20 largest assets by market capitalization and edging closer to JPMorgan and Samsung. The cryptocurrency also hit a three-year high against bitcoin, adding to bullish enthusiasm.
As Pantera Capital points out, the burgeoning ethereum network is now more valuable than many of the big banks, with the exception of JPMorgan Chase.
Furthermore, Ethereum miners have once again earned more than Bitcoin miners in the past week. Ethereum miners earned an average of $77 million a week last week, surpassing Bitcoin miners’ $67 million.
Since the beginning of this year, the income of Ethereum miners has been higher than that of Bitcoin. The main reason is that the price of Ethereum has risen sharply. In the past few weeks, the price of Bitcoin has fluctuated, while Ethereum has continued to rise. From $730 at the beginning of the year, it once rose to $4,300 a few days ago.
Another key reason is the skyrocketing transaction fees on the network. Currently, 40% of the income of Ethereum miners comes from Gas fees. But with Ethereum Improvement Proposal (EIP) 1559 going into effect this July, a portion of the fees will be sent to the network itself rather than miners.
Therefore, we can see that being an Ethereum miner is very happy, not only enjoying the joy of a soaring market value, but also enjoying the excess rewards brought by ecological dividends, which is enviable!
