Everyone knows that the current market value of ETH has always been second, and a large number of people believe that ETH will surpass Bitcoin, while more people believe that Bitcoin will always be the leader and ETH will always be the second.
So, is it possible for ETH to surpass Bitcoin? Let’s analyze it.
First of all, the circulation quantity. Currently, ETH has already started deflation, and because of the airdrop on the second layer, the burning rate is increasing. In the future, ETH will not increase, but may decrease, thus stabilizing in a certain range. Therefore, scarcity will increase, which is undoubtedly a positive.
The second point is the financial attribute. Whether it is DEFI, DEX or other on-chain products, ETH is needed (even if it is cross-chain, ETH will be used as cross-chain transaction fees), which is exactly what BTC cannot match, and this is also the main reason for the current popularity of the second layer.
The third point: the need for airdrops. Although this is another factor, it is a very important point. In just one month, the STARKNET network has added 10,000 ETH, and ZKSYNC has also attracted a large number of coin users in just one month, which undoubtedly increases the value of ETH. When people cross-chain ETH to the second layer, most people may just put it in for trading or interaction, and it is estimated that few people choose to sell it. Therefore, this is also a good thing for ETH.
So why do I say that ETH will surpass BTC in the next bull market? The main reason is that after more people understand the properties of ETH, they will gradually accept it. This process is the same as that of Bitcoin, from suspicion to scams, and then to the current annoyance and regret for not buying it earlier. Moreover, the number of people who know Bitcoin far exceeds that of ETH. So after knowing the role of ETH, these people who don’t know ETH are likely to buy ETH as an investment product. This is the same as the current Dogecoin. Because of Musk’s propaganda, many people have learned about Dogecoin, but the part of people who currently know about Dogecoin may also become potential users after learning about ETH in the future.
When to buy?
If I say that now is the best time to buy, I guess there will be a lot of people scolding me, saying that now is a particularly high price, Bitcoin will return to 5,000, and Ethereum will return to 800. So, do you think it is more likely that ETH will return to 800 or rise to 4,000?
In the current market, if I am not mistaken, institutions have almost built positions when Bitcoin was trading sideways at 15,000-23,000. This is similar to when Bitcoin was built up at 6,000-9,000 for a year 20 years ago. At that time, many people believed that Bitcoin would return to 3,000, but it turned out that it didn’t even reach 10,000, right?
The current market is the same as the market in 2019-2020. So I think that if you have a lot of money, you can buy a lot of ETH when it is below 2000, buy it when it falls, and hold it for 1-2 years. Of course, if you have very little money, then it is more suitable to buy altcoins, because if you only buy ETH with a few hundred, it will only double tenfold at most, right?
