According to Bloomberg’s senior macro analyst Mike McGlone, Ethereum, the world’s second-largest cryptocurrency based on market capitalization, will surpass Bitcoin in the next bull market.
Despite Bitcoin and other risk assets deflating significantly over the previous year, McGlone highlighted in the most recent market outlook report that Ethereum displayed more durability, indicating that it “may be a leading contender to continue outperforming the pioneering cryptocurrency.”
Since reaching their respective all-time highs in November 2021, Bitcoin and Ethereum have fallen around 76% and 75%, respectively. Notably, the yearly volatility of Ethereum is around 1.3 times that of bitcoin. Thus, although Ethereum is still profoundly discounted, McGlone observed that the ETH/BTC cross rate stayed the same in May 2021 at a ratio of 0.08, while the Nasdaq 100 Stock Index was around 20% higher, tipping ETH in the direction of resuming appreciation if volatility is any indication.
According to the expert, Ethereum’s resiliency and expected outperformance relative to the leading crypto asset is mostly attributable to its acceptance by the public.
“Migration into the mainstream is our most important lesson, and after the dust settles from any reversal in risk assets in response to inflationary pressures, Ethereum is more likely to start doing what it has been doing — outperforming,” Glone concluded.
Ethereum has been at the centre of attention over the last year as worldwide crypto adoption has gained momentum. Although the cryptocurrency was modelled after bitcoin in its early years, Ethereum went a step further and now powers a wide variety of applications through smart contracts, becoming a favourite among institutions, developers, and enthusiasts who view it as a valuable altcoin with real-world applications.
In the last year, tens of thousands of initiatives and businesses, including PayPal, have registered their services on the network in an effort to establish a foothold in the Metaverse, Non-fungible tokens (NFTs), and DAOs.
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