Years ago, ether had little chance of competing with bitcoin. Its goals could be getting more attainable at this point.
The second-largest cryptocurrency is gaining market share from bitcoin ahead of a key “Merge” software upgrade that, if successful, could significantly lower the energy usage of its Ethereum blockchain.
According to statistics portal CoinMarketCap, Bitcoin’s dominance, or proportion of the crypto world’s market value, has fallen to 39.1% from a high of 47.5% in mid-June this year. Ether, on the other hand, has increased from 16% to 20.5%.
The upstart is still a long way from displacing bitcoin as the most valuable cryptocurrency, a reversal known among enthusiasts as “the flippening.” However, it has made up ground; in January 2021, bitcoin held 72% of the market, while ether held only 10%.
In terms of pricing, one ether is presently worth 0.082 bitcoin, which is close to the December 2021 highs and far more than the June 2022 low of 0.049.
“People are now viewing Ethereum as essentially a safe asset because they’ve seen the success of the network, they think it’s not going anywhere,” said Joseph Edwards, Financial strategy director at investment management business Solrise Finance