Bitcoin, the world’s leading digital asset, has begun to lose its market dominance to Ethereum, this view was shared recently by the CEO of Celsius Network Alex Mashinsky during a recent interview with Kitco News.
Per data from Coinmarketcap, Bitcoin’s market dominance stands at around 44% while that of Ethereum has risen to approximately 19%.
ETH Is Already Flipping BTC
According to Mashinsky, the second-largest asset by market cap is already breaking the hypothetical dominance and holding more value than BTC. He buttressed his point using his firm’s network saying “we manage about $17 billion in deposits or customer coins, and the number one coin held in dollar terms is Ethereum.”
He continued that in the next two to three years, we could see ETH totally overriding the dominance of BTC. In his words “the flippening already happened. Ethereum already surpassed Bitcoin in dollar terms as the total holdings of the Celsius community, and I think that the broader market will follow it in the next year or two. We will see that flippening happening also in the broader market.”
Mashinsky identified the uses of both assets as what could play a key role in this development. To him, Bitcoin is best held as a store of value, while Ether’s primary use is yield farming.
Yield farming is a process where investors lock up or stake their crypto assets in the hope of being rewarded. This has become quite common in recent times as more people are taking advantage of decentralized finance applications that are built on the Ethereum blockchain for these services.
Mahinsky stated that “Yield is an application that just has a broader user base. So I think over time, you will see broader adoption of Ethereum than of Bitcoin. But obviously, both of them are exceptional applications and exceptional blockchains, and we will see broad adoption of both; it’s just that one will exceed the other.”
Ethereum Could Gain 40% on Bitcoin
In other news, popular crypto analyst, Michaël van de Poppe, is of the opinion that Ethereum could gain as much as 40% on Bitcoin’s value.
Citing the fact that the support level of both assets stands at 0.063 BTC, he believes that this indicates that “Ethereum is continuing the run against the Bitcoin pair.”
And with investors looking out for Ethereum’s London hard fork which consists of 5 different EIPs that addresses different issues facing the network. Hopes are high that Ethereum could continue its upward swing against its more popular counterpart.