Will ETH Finally Flip BTC?

In 2017-2018, the debate was whether Tron would surpass Ethereum to second place. But, looking at how things have evolved, the debate has been settled.

In 2017-2018, the discussion was whether Tron would slide into second place after Ethereum. But, judging by how things have played out, that debate has been put to rest.

Ethereum is the dominant smart contracts platform. But, this hasn’t stopped analysts from comparing Bitcoin and the world’s no.1 altcoin.

Will ETH Finally Flip BTC?

On X, one user claims that Ethereum only needs time to flip Bitcoin as the no.1 crypto. Citing several factors, the analyst said Ethereum is better positioned to take over from the first cryptocurrency, highlighting the larger user base and the benefits smart contracts bring to the equation, among others.

Judging by CoinMarketCap data, Bitcoin has a market cap of over $1.3 trillion, with each coin trading for over $68,000 at spot rates as of May 28. Meanwhile, Ethereum is perched at second.

Although it has been one of the top performers in the last week, extending gains versus Bitcoin, each coin is changing hands for over $3,800. It has a market cap of over $465 billion at this level.

Comparing the two, Bitcoin is roughly three times more valuable than Ethereum. But, even with the larger market cap, stemming from its first mover advantage, one analyst believes Ethereum is superior.

For example, the observer said Ethereum has a substantially larger user base than Bitcoin. The broader user base is because developers can launch protocols on the platform. Some of the most popular ones, like Uniswap and Aave, generate more daily fees than Bitcoin.

Besides this, the analyst said Ethereum serves as a store of value and a medium of exchange. These features give it more edge than Bitcoin, which purely exists as a transactional layer for moving value trustlessly and cheaply across borders.

From an infrastructure perspective, the analyst argues that being an Ethereum validator is easier than running a Bitcoin mining rig. Over 1.9 million Ethereum validators have staked at least 32 ETH for a chance to validate a block of transactions and earn rewards. On the other hand, Bitcoin mining necessitates specialized hardware. Mining rigs are typically expensive and difficult to come by.

Spot Ethereum ETF Listings Approval And The Security Question

While the United States Securities and Exchange Commission’s (SEC) decision to approve spot Ethereum exchange-traded fund (ETF) listing is bullish, whether ETH is a security or a commodity remains to be clarified. Bitcoin, in comparison, enjoys a clearer designation as a commodity.

The United States SEC has not explicitly declared ETH a security. However, ConsenSys recently sued the agency, alleging that they internally considered ETH a security. There is a clash because the Commodity Futures Trading Commission (CFTC), a sister agency to the SEC, categorizes ETH as a commodity.

But, as the debate continues, analysts are suggesting that the commission would be endorsing ETH as a commodity if it approves form S-1 for registration.