Ethereum is the leader of the next round of bull market? Will the market cap surpass Bitcoin?
Recently, Yang Haipo, the founder of ViaBTC, posted on Weibo, "Ethereum must be the leader of the next bull market, and its market value will definitely surpass Bitcoin." Its optimistic attitude towards Ethereum is evident.
According to this point of view, if the market value of Ethereum exceeds Bitcoin, we can roughly estimate the unit price of Ethereum:
Today Bitcoin has a market cap of $171.1 billion and Ethereum has a market cap of $25.4 billion. If the market value of Ethereum is to exceed that of Bitcoin, it must be multiplied by 7 times on the current basis. Since the current annual inflation rate of Ethereum is about 5%, this ratio is not high. Therefore, we assume that the number of Ethereum remains unchanged, then The price of Ethereum will increase seven times from the current level, which means it will reach about $1,500.
$1,500 is the peak value of Ethereum’s bull market at the end of 2017. In my opinion, Ethereum will reach this price sooner or later. It is only a matter of time, not whether it can be achieved.
Then, in the process of Ethereum rising from the current $220 to $1,500, the price of Bitcoin will most likely rise simultaneously, and it is impossible to always stop at the current price of $9,300.
Therefore, if the market value of Ethereum is to surpass that of Bitcoin, then the rate of rise of Ethereum will be much faster than that of Bitcoin when Bitcoin rises on one side, so the price of Ethereum will definitely exceed $1,500 in the future, and it will exceed a lot.
Talking about this situation in the current sluggish market conditions seems a bit like "daydreaming", but I think this prospect is still very worth looking forward to.
In the previous sharing, I thoughtHow high Bitcoin will rise next or what climax the Bitcoin bull market can reach does not depend on the halving of Bitcoin, but on the development of Ethereum and its ecology. It can even be said that the market and climax of the entire digital currency in the future It all depends on the development of Ethereum and its ecology.
If Ethereum and its ecology cannot make a breakthrough, the price of Bitcoin will not rise very high, and once Ethereum and its ecology develop greatly, there will be valuable application scenarios, and these scenarios will bring another wave. There are waves of hot spots, and these hot spots will push related tokens to climaxes one after another, and these climaxes will push Bitcoin up wave after wave.
Looking back at the sluggish trend of Bitcoin since this halving, I think that the reason why Bitcoin has been unable to break through the $10,000 mark on the one hand may be that the short-selling mechanism has caused Bitcoin to have strong short-selling pressure around $10,000;
On the other hand, more importantly, I think it is no longer possible to attract new investors to enter the market simply by saying "halving". New money coming in requires a new story and a new selling point.
In contrast, the recent explosion of DeFi in the Ethereum ecosystem has triggered a wave of investors rushing to buy various DeFi tokens. Although this trend has not yet driven the rise of Ethereum, as the entire ecological basic platform of Ethereum, I believe that when this ecological development crosses a certain critical point, its value will be passed on to Ethereum.
There is a trend of "Bitcoin fundamentalism" in the circle. This trend of thought believes that except for Bitcoin, all other tokens and even Ethereum are meaningless. This trend of thought encourages everyone to sell other tokens and buy Bitcoin. currency. Many of the early participants in the circle have this attitude.
If it is said that a few years ago, when Ethereum had not yet formed such a huge ecology as it is today, this point of view still has merit, but it is definitely out of date to invest with this attitude now and in the future.In the future, our investment focus must turn to Ethereum and its ecology.
In this case, I think Bitcoin can account for 30% to 40% of the funds invested in this situation, while Ethereum and its ecological tokens should account for at least 50%.
