Bitcoin (BTC) and Ethereum (ETH) have been doing very well lately. Ethereum, in particular, has seen a big surge in recent times, rising by about 50% since July. At the time of writing, the Ethereum price is at $ 400 and the coin now appears to be making room for the king, BTC.
Although both currencies have risen sharply, a report from Bloomberg recently indicated that there are still two major differences. The article stated that Ethereum's stunning rise is based on investor speculation, while Bitcoin's rise is organic and based on solid fundamentals.
“Ethereum has pushed back from last year's highs and moved to the top spot of the top performing major crypto assets in 2020, but we see the rally as more speculative compared to favorable demand vs. terms of delivery that support Bitcoin. ”
Bloomberg went on to explain that Ethereum has only about one-fifth of Bitcoin's market cap and faces a lot of competition from other similar cryptocurrencies. Bloomberg, on the other hand, suggests that Bitcoin is slowly evolving to become a digital version of gold, with an increasing correlation between the two.
Ethereum fundamentals actually strengthen
However, we at CryptoBenelux do not entirely agree with Bloomberg's article. The fact is that the fundamentals of Ethereum have only gotten stronger in recent times.
Thus, the DeFi market is only growing, reaching a market cap of $ 9 billion. In addition, we indicated at the beginning of this year that more than 359 large companies - such as Microsoft, Nike, Intel, Amazon, etc. - are building on Ethereum. The full list is astonishing to see and not only shows that many of the world's biggest brands are building on Ethereum, but it also shows how much potential the asset has in the future.
Finally, the long-awaited update Ethereum 2.0 is just around the corner and an increase prior to the update can of course be characterized as speculation, but this is not much different than buying Bitcoin prior to a major financial crisis.
What do you think? Do you agree with Bloomberg or with us? Let us know on our socials!