Galaxy Digital CEO Mike Novogratz believes Ethereum could soon outperform Bitcoin, driven by institutional demand and favorable macro conditions.
Ethereum vs. Bitcoin: Galaxy CEO Novogratz Weighs In
The crypto world is buzzing with speculation: can Ethereum (ETH) steal Bitcoin's (BTC) thunder? Galaxy Digital CEO Mike Novogratz thinks it's possible, citing growing institutional interest and supportive economic factors.
Ethereum's Ascent: Institutional Demand and Supply Squeeze
Novogratz, in a recent CNBC interview, highlighted Ethereum's increasing momentum. He pointed out that several firms are actively raising funds specifically to acquire ETH, like SharpLink Gaming, which holds over 360,000 ETH. This isn't just retail hype; it's real institutional money flowing into the market, especially with the launch of Ethereum ETFs. He estimates that over $20 billion has entered the crypto space recently, boosting both institutional and retail enthusiasm.
According to Novogratz, Bitcoin is solid, a store of value, but Ethereum is the growth play. If ETH breaks through key resistance levels, it could lead the next big crypto rally.
Macro Trends Favoring Ethereum
Novogratz also mentioned macro trends as a tailwind for Ethereum. Risk assets like ETH could benefit from inflation pressures, increased capital spending, and stimulus efforts by the U.S. and China. As long as the Federal Reserve remains dovish, ETH prices could keep climbing. The success of Ethereum ETFs, like BlackRock’s ETHA, which rapidly amassed $10 billion in assets, further fuels this growth.
Base Case: Ethereum Layer-2 Dominance
Taking a look at developments in the Ethereum ecosystem, Coinbase's Base, an Ethereum layer-2 solution, is leading in revenue generation due to its unique fee model and decentralized exchange activity, surpassing other top rollups. According to Galaxy Digital, Base has generated an average daily revenue of $185,291, dwarfing Arbitrum's $55,025 and the combined $46,742 of 14 other leading rollups. Base's Sequencing Model and economic success can be attributed to its unique sequencing model, where users can pay a priority fee for expedited processing.
Bitcoin's Long-Term Outlook
Despite his bullishness on Ethereum in the short term, Novogratz hasn't abandoned his long-term view on Bitcoin. He still anticipates Bitcoin reaching $150,000, supported by favorable macro conditions. However, he cautions that a change in stance from figures like President Trump or the Federal Reserve could halt this progress.
Nativo Resources Embraces Bitcoin
In other news, Nativo Resources Plc, a London-listed gold mining company, is allocating Bitcoin as part of its reserve assets. The policy, disclosed on July 7, 2025, involves using free cash flow from mining activities and future fundraises to purchase Bitcoin, which will be held as a long-term treasury asset. This move is a hedge against macroeconomic risks, including inflation, while leveraging Bitcoin’s perceived store-of-value properties.
The Bottom Line
So, will Ethereum overtake Bitcoin? Only time will tell. But with institutional interest rising, favorable macro trends, and innovative developments in the Ethereum ecosystem, the stage is set for an exciting crypto showdown. One thing's for sure: keep your popcorn handy!
