Ethereum Will Outpace Bitcoin Due to Fundamental Advantage, Expert Says
According to Amberdata, the trend of Ethereum’s price accelerating at a faster rate than Bitcoin’s may continue due to a more favorable deflationary policy.
In the past week, Ethereum’s price has increased by 17%, while Bitcoin’s has only risen by 9.4%. Although Bitcoin remains in the spotlight as spot ETF trading begins on January 11 and investors anticipate the halving in April, attention may soon shift to the significant decrease in Ethereum’s market supply.
In their weekly update, Amberdata’s director of derivatives, Greg Magadini, pointed out the potential impact of the upcoming implementation of The Merge update in 2022, which will switch the network to a Proof-of-Stake consensus algorithm and introduce a mechanism for burning transaction fees.
While many are anticipating the Bitcoin halving, Magadini stated that the decrease in ETH supply, which has been actively happening since September 2022, is a more significant factor to consider.
