Although Bitcoin and Ethereum have been performing similarly lately, many are still betting on a “flipping,” that is, Ethereum overtaking Bitcoin in terms of market capitalization.
Currently, Bitcoin has a capitalization of $810 billion, while Ethereum has a total value of $390 billion, just over 48% of that of Bitcoin, so there is still a long way to go. that ETH overtakes BTC.
However, according to some, this could happen as early as this year 2022. This is indeed the forecast posted by Kevin Kelly, CEO of Benchmark Investments, in an interview with Marketwatch at the end of last week.
Ethereum could outperform Bitcoin this year
In particular, Kelly argued that smart contract networks like Ether offer more utility than bitcoin, which is considered a store of value.
"We absolutely believe that a flippening can occur this year," said the CEO of an ETF issuing company.
"We believe that as the digitization of the world continues to occur, Ethereum is the network for that," Kelly said, noting that Ethereum is fueling several crypto market trends such as the growth of private blockchains, NFTs , or DeFi (decentralized finance).
"So over the next three to five years, we believe the growth of blockchain applications will be unprecedented, and Ether will absolutely have a role to play in this," he explained.
An Ethereum ETF could also be a powerful bullish factor
Apart from the advantages of Ethereum over Bitcoin, the manager highlighted the fact that the proliferation of ETFs on Ethereum could be a powerful bullish factor for the second largest cryptocurrency in the market.
Recall that the SEC last year validated the first ETF based on bitcoin futures, and hinted that it preferred to digest the recent batch first batch of bitcoin futures ETFs before to look into the case of Ethereum.
However, Kelly does not rule out that this could happen this year in his most optimistic scenario, conceding however that the most likely scenario would be that Ethereum ETFs start to appear in 2023.