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For quite some time, Ethereum has outperformed Bitcoin on a variety of fronts. Despite the fact that BTC’s market valuation of $698 billion is more than quadruple that of ETH, the latter has recently gained traction.
In May, the alt “flipped” numerous Bitcoin measures, and the distance between the two cryptocurrencies has only widened with time. For starters, as seen in the graphic below, Ethereum’s adjusted on-chain volume increased from $346 billion to $666 billion in a month, whereas Bitcoin decreased from $447 billion to $407 in the same time period.
Next, as BTC miner revenue decreased by 15% to $1.45 billion, ETH miner revenue, on the contrary, saw an uptick of 42.8%, and climbed to a new ATH of $2.35 billion. Lars H, research analyst, pointed out,
“This is the first time since June 2017 that ETH miner revenue > BTC miner revenue.”
Additionally, as BTC futures volume witnessed a surge of 30%, the same for ETH was about 94.7%. Additionally, he stated,
“However, the real story on the derivatives front continues to be ETH options.”
Commenting on similar lines, another popular analyst highlighted:
Trade volume of Bitcoin & Ethereum options (monthly).
— mhonkasalo (@mhonkasalo) June 1, 2021
Commenting on the ETH-BTC flippening debate, Blockchain company Edge & Note’s cofounder, Tegan Kline, recently asserted:
“Ether will likely exceed Bitcoin at some point in the future, as Ethereum will be superior when it comes to innovation and developer interest.”
Additionally, Goldman Sachs’ commodity strategists Jeff Currie and Mikhail Sprogis claimed that Bitcoin’s first mover advantage appeared to be “fragile.” Relying on ETH’s store of the value function, the strategists also propounded that the flagship alt was the “most likely candidate” to surpass Bitcoin. They added,
“It [Bitcoin] will eventually lose its crown to another cryptocurrency with greater practical use and technological agility.”
Unsurprisingly, Bitcoin had one of its poorest monthly performances in May. It dropped by more over 37% in a single month, whilst ETH only dropped by 11%.
Ethereum has grown by 900 percent in the last year alone, whereas Bitcoin has grown by only 275 percent. The “flippening” argument will continue until indications grow even stronger, based on the gains reported and the propensity of many measures towards Ethereum. Nonetheless, as we noted in our prior research, the same does not appear to be likely, at least not in the near future.