Bitcoin, the world’s first cryptocurrency, has been leading the market for years and ether could only dream about challenging big brother.
However, it appears that the ambitions of ether may finally be becoming more realistic, especially with the all-important update coming it’s way.
Statistics show that the second-biggest crypto in the world is stealing bitcoin’s market share, ahead of the renowned upgrade called The Merge scheduled to happen in the coming days.
If the developers are able to make it happen, the upgrade would help the Ethereum blockchain in reducing its energy usage.
According to the data from CoinMarketCap, Bitcoin’s share of the total crypto market capitalization had stood at 47.5% in mid-June.
However, the pioneer crypto has seen its dominance decline to 39.1%. As far as Ether is concerned, its dominance has gone up from 16% to 20.5%.
While there is no doubt that the upstart still has a lot of ground to cover if it wants to overtake bitcoin as the world’s top cryptocurrency, a reversal that has been termed as ‘the flippening’.
But, it should also be noted that ether has made some progress in this regard. Its market dominance in January 2021 had stood at 10%, while bitcoin stood at 72%.
As far as price is concerned, the value of ether against bitcoin is now 0.082, which is close to the highs it reached last year in December.
This is also sharply higher than the lows it had recorded in June at 0.049 bitcoins. Market experts said that people are now considering Ether to be a safe asset.
This is primarily because they have witnessed the network’s success beforehand and they believe it is not going to go anywhere.
Ethereum has now become a permanent aspect of the crypto ecosystem.
After having undergone a number of delays, The Merge is scheduled to occur this week on Thursday and if it does go through, the use of the blockchain is likely to increase.
This could give the price of the ether token a boost as well, but nothing can be said for certain in terms of the capricious crypto market.
It should be noted that the Ethereum blockchain is the backbone on which the world of ‘Web3’ is based. This essentially refers to a crypto-powered internet including non-fungible tokens (NFTs) and decentralized finance (DeFi).
This year has seen the price of both bitcoin and ether decline by 50%, primarily because of the massive interest rate hikes from central banks all over the world.
It has ended up making investors risk-averse and the crypto market has seen a broad sell-off. But, investors do seem to be taking an interest in The Merge.
This is evident by the fact that since the end of June, the price of Ether has gone up by almost 65%, while bitcoin’s price has not moved much in the same time span.
Investors concerned about energy consumption are likely to take an interest in ether over bitcoin.