Analyst Ghoddusifar suggested ETH could be a better cryptocurrency in the future than Bitcoin. The analysis is based on the fact that Ethereum has more use cases, spanning multiple segments including NFT, dApp, and DeFi. According to Ghoddusifar, demand from many of these segments has the potential to make ETH enthrone BTC.
Red and blue
Will ETH really beat BTC to become the top crypto in 2023?
It is true that Ethereum has really made a mark in terms of utility. However, BTC has repeatedly proven itself as the king of the crypto world. To date, it has maintained its lead in terms of market capitalization and still has the first-mover advantage.
Ghoddusifar highlighted some of the downsides of ETH, such as higher transaction fees than Bitcoin. This puts it at a disadvantage compared to Bitcoin in terms of mass adoption. However, Ethereum has made many major changes that could propel the project toward success in 2023.
Will 2023 favor ETH?
ETH open interest (OI) is up for more than two weeks now, showing that demand in the derivatives market is recovering. At the same time, Long liquidation has decreased. This could be a sign that the market is favoring the bulls.
However, it should be noted that reserved ETH on the exchange increased over the past two weeks, which means investors are moving ETH from personal wallets to exchanges, usually for the purpose of selling.
Additionally, the fund’s holdings declined in December, indicating that institutional investors are reducing their ETH balances.
The lack of institutional buying pressure means that any upside in the next few days will be limited. Note that this is not necessarily true if the rally that started this week marks the start of the next bear market. If this happens, we could see a resurgence in organizational needs.
Conclusion
ETH may be showing bullish signs but a strong rally is still far away. Meanwhile, the project may take the lead but will have to compete with other similar or even stronger competitors.
Ultimately, Bitcoin and ETH have different strengths and weaknesses. ETH is not far from Bitcoin in terms of market capitalization. There is still a real chance that ETH will surpass BTC in the future.
Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision.
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