Do the prices of Bitcoin and Ethereum reflect the development of their technologies?

特邀专栏作者

2021-01-26 11:24 (UTC+8)

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Ethereum’s growing dominance could surpass Bitcoin’s if the price keeps rising and Ethereum continues to grow in the future.

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Ethereum’s growing dominance could surpass Bitcoin’s if the price keeps rising and Ethereum continues to grow in the future.

Back in time to January 21st,The entire cryptocurrency market has seen a clear recession. Bitcoin fell to $28,880 and Ethereum fell to $1,081 after hitting an all-time high. Yet while Ethereum and other cryptocurrencies have managed to recover to higher levels, Bitcoin is still struggling within its current price resistance range.

At press time, Ethereum was valued at $1,425, while Bitcoin was under $34,000.

According to analysis by Santiment, bitcoin and ethereum have been in a fierce competition since the end of December 2020, but both have shown strong dominance, and now there are data showing the technical development of these two assets in January reflect their price levels.

Fundamentally, the direction of things should always be moving forward for all digital assets, not just Bitcoin and Ethereum, and the chart above reflects positive signs of price and underlying technological progress.

However, if the price keeps rising and Ethereum continues to develop in the future,Ethereum's Rising Dominance Could Surpass Bitcoin。

Since early 2019, Ethereum has been at the "frontier" of technology, and now its development arm may be starting to pay off.ETH2.0 successfully launched the "0" phase (beacon chain) in December 2020, but there is still a significant difference in the activity of Bitcoin and Ethereum on GitHub.

Ethereum's GitHub site continues to be active, and there are currently 247 active repositories according to site calculations. A repository is a storage section that contains project files and each file's revision history. 247 repositories could mean that there are currently 247 ongoing projects enacted in Ethereum.

In contrast, Bitcoin has only 4 warehouses.

The above differences are based on the principle that,Technically speaking, Ethereum is a platform for several projects, while Bitcoin is a platform developed independently。

However, it cannot change the fact that more developers are joining Ethereum than Bitcoin. According to a recent report, over the past 3 years, the number of monthly active developers on Bitcoin has grown by 70%, but the number of developers on Ethereum has skyrocketed by 215% over the same period. So, is Ethereum in a better position?

The logical answer is yes, but technical developments may not always reflect price action. Bitcoin remains wildly popular among major investors and traders, playing a huge role in market sentiment.

And Ethereum is just starting to get the attention of some institutional traders, so we expect, at least for now,The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.。

The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.