Ethereum & Bitcoin Still Top Tokens

0


Coinbase has released its 3Q financial summary, highlighting key business and financial metrics, a report of the previous quarter as well as in-depth insights into the crypto market.

According to Coinbase’s report, although institutions have split their interest into other crypto assets, Bitcoin and Ethereum maintain their leading positions. This fact is proven via the trading volumes on Coinbase.

Coinbase Sees Bright Future for Tokens

The major crypto exchange has a long-term strategy to expand its support for the two leading digital assets.

According to CFO Alesia Haas’ statement, Coinbase has reinvested profits into crypto this year, the estimated total amount is $180 million.

She commented,

“In the big picture, our goal is to become vast majority, if not 100%, crypto over time. We’ve made two commitments. The first was to invest $500 million of our cash and cash equivalents into crypto…And second, we’re allocating 10% of quarterly net income into crypto investments. We’ve invested upwards of $180 million year-to-date as measured at cost.”

Coinbase has invested $540 million in Bitcoin, Ethereum, and other crypto-assets.

The Race to Market

From the very beginning, Bitcoin has been the coin of other coins. Coinmarketcap.com reported that Bitcoin currently has a market capitalization of around $1.246 trillion.

The key difference between Bitcoin and traditional fiat currencies like the USD or Euro – all of which are under the control of a central bank, is that Bitcoin is totally decentralized.

Many Bitcoin advocates refer to the virtual currency as a “store of value” – a status often attributed to traditional safe-haven investments like gold. They argue that Bitcoin is a good tool to combat inflation, an issue that is causing concern among investors globally.

If Bitcoin is always in the first place, then Ethereum is always in second place in the crypto sphere. The market capitalization of Ethereum is currently over $560 billion.

The Ethereum system came in 2015 as an open-source software based on the blockchain, and Ethereum is the digital currency that empowers the whole system.

This year, the price of Ethereum has increased by more than 500% and has even broken the record. Investors believe that Ethereum will be the key to the decentralized finance sector including smart contracts, NFTs, and the next expected big thing: Metaverse.

The Ethereum system was created to extend the functionality of blockchain technology away from Bitcoin so that the underlying technology offers wider applications than just a virtual currency.

Unlike Bitcoin, Ethereum’s supply is unlimited. New Ethereum tokens are constantly being created through the same mining process as Bitcoin mining.

The long-waited Ethereum 2.0 upgrade phase is approaching. Meanwhile, investors agree that Ethereum 2.0 will feature many new tools.

Expectations about the network consist of faster speed, improved security, and high scalability which enables thousands of transactions to process per second on the blockchain.

No Clear Winner Going Forward

Many people still compare Ethereum to Bitcoin and hope that Ether will soon be able to overtake the largest cryptocurrency. However, this is very unlikely to happen anytime soon.

If the drawback of Bitcoin is its volatility, for Ethereum, the only challenge is that Ethereum’s development is incomplete, so it is difficult to predict what improvements will come true.

This may create a lot of confusion in the investment process.

Because of this, it is unlikely that ETH will surpass Bitcoin in the near term. However, in the future, the cryptocurrency market is still subject to many changes, so no one can predict what might happen.

Additionally, other coins such as Solana, Tether, Cardano, or Binance Coin are getting stronger support and driving more interest.

Despite the distance between the two leading coins and the rest, tomorrow is a mystery.

Any new cryptocurrencies could disrupt the situation at any time just look at how technologies are always at risk of being displaced. It is the race of belief, the coin that stands the test of time, and adoption is the strongest coin.


Source link

You might also like
Leave A Reply

Your email address will not be published.