The rapid growth of the cryptocurrency space, in all fairness, has been credited to the rapid boom of Bitcoin and the unwavering progress of Ethereum. Bitcoin continues to get mainstream adoption and institutional adoption. Ethereum, on the other hand, continues to grow at its own pace and cannot match the level of Bitcoin yet.
However, since the turn of the year, the performance of Ethereum has been tremendous. The leading altcoin is now set to be the toast of many investors, particularly institutional investors, who have now set their sights on maximizing profits via the digital asset.
Ethereum has done more numbers when compared to Bitcoin
Compared to Bitcoin in terms of price, the leading altcoin is nowhere near the leading cryptocurrency, Bitcoin. However, since the first quarter of 2022, Bitcoin’s 750% growth has been surpassed by Ethereum’s 1250% growth. Ethereum is the asset with the second-largest market capitalization, and comparing its prices of about $1300 to Bitcoin’s $38,000, is baseless, but its growth must not be ignored. The Ethereum network has also been the leading platform for building blockchain project.
Many blockchain developers have preferred the network over their counterparts like Tron, Cosmos, and Co. to develop and launch decentralized applications. Another reason associated with investors taking a second glance at the cryptocurrency is its growing trading volume.
The $1 trillion value of transactions on the network is even higher than that of financial services like Paypal, with trading volumes of about $300 billion in the last quarter. The correlation between high trading volume and growth for the network is that the transaction fees are expected to generate returns. According to analysts, the returns will boost prices in the long run, depending on the network’s number of users.
Ethereum boosting the DeFi sector
The second-largest cryptocurrency by market cap is also bolstering the growth of the DeFi space. The DeFi space is continuing to lead several innovations and growth, with Ethereum giving the ecosystem the necessary boost it needs. With Ethereum responsible for most of the projects on the space, the DeFi space had witness growth of more than 3000% in less than 12months. Investors and traders are taking a keen look at the network’s success and its token, with most of them now starting to consider it.
The launch of a new and improve Ethereum 2.0 network had also made Ethereum a toast of all. The new network, which had seen transaction speed improve, increased scalability, and bolstered prices, is set to take the network to ATH. The improved network, a boost of DeFi, and many other factors are backing new investor interest in Ethereum. This is set to be a new trend as analysts believe that the cryptocurrency will enjoy a stellar year amidst the influx of interest from investors and institutional investors at large.