Bitcoin is the world’s largest cryptocurrency by market cap, but it has been losing to one of its peers. Lately, Ethereum has been outperforming Bitcoin and is growing at a tremendous pace. Over the past year, the cryptocurrency has increased by over ten times and continues to touch new highs. And the most recent change in its network could lead to even higher gains in the future. This change is one of the most significant changes since it came into effect in 2015. Is there a chance that it could cross Bitcoin in the market cap, or will it stay a strong second? Let’s see.
The recent changes in the network!
The changes made to the network will now reduce the number of floating Ether tokens in the market. Every time a transaction happens, a broken will get destroyed and hence drive up the coin’s demand with less supply. The change is called the EIP 1559. As of now, there is no way to precisely calculate the amount of Etherium that is required for transactions. This has led to many sites that claim to give an estimated price for the same. But now, the new change EIP 1559 will get embedded in the cryptocurrency’s network and provide an average cost as transactions happen.
Etherium was facing a lot of criticism because there was an infinite supply of coins, which led to inflation. It, in fact, defeats the primary purpose of cryptocurrencies. But now, with the latest change that they are implementing, inflation won’t be a problem anymore. Moreover, as the number of tokens gets destroyed, there will be fewer coins with time, and hence the value of each Ethereum coin will increase. This new change is yet to be approved, and if it is, then the results can be tremendous.
Ether’s price hike
Etherium has seen a significant price jump in the past year, and similar to Bitcoin, it has seen a major increase in trading volume. But one thing that has stayed constant with the cryptocurreny is the constant criticism for its infinite supply of coins. At the same time, many critics have openly said that Ethereum can’t be viewed in the same light as Bitcoin because of this reason. There has also been another bug in the network of Ethereum is the difference in prices and charges. But with the latest change that will be fixed and Ether’s actual value will be increased. After the changes are implemented, one can only use Ether to pay for the transactions in its network, increasing the importance of the cryptocurreny in the network.
In the coming months, it won’t be a surprise to see the prices of Ethereum increase even further. It is still almost 10-15% behind the all-time-high that it achieved some time back when Bitcoin also touched $58,000.
What are your thoughts on the new changes in the Ethereum network? And do you think that it can keep outperforming Bitcoin? Let us know in the comments below. Also, if you found our content informative, do like it and share it with your friends.
Also Read: New tech companies are considering crypto as a payment method.
