Ethereum has eclipsed Bitcoin in terms of the total number of daily active addresses, which is one of the clearest signals that Bitcoin is losing its position as the world’s most popular cryptocurrency. On a crypto network, active addresses display the total number of senders and receivers for a given token. The fact that Ethereum has surpassed Bitcoin in market capitalization indicates that the world’s second largest cryptocurrency is on its way to becoming the most popular.
“On a day that saw history be made with #Ethereum surpassing #Bitcoin in daily active addresses for the first time, #altcoins came to play. $KSM, $COMP, and $ZIL were among many projects to make an imprint on the markets, while $BTC ranged around $34.5k,” tweeted crypto analytics company Santiment, on 29 June.
Several more companies have reported the same thing in the last week. Despite the fact that Ether’s market capitalization is over three times that of Bitcoin’s, with over $200 million and $600 million in market capitalization for each currency, respectively, this could be an indication that the crypto community is shifting in favor of Ethereum over Bitcoin.
Bitcoin’s status as the world’s poster boy for cryptocurrencies has recently been put into question. Experts such as Mike Novogratz, CEO of Galaxy Digital, have predicted that Ethereum will become the most popular crypto currency in the future, while billionaire Elon Musk has expressed concern about the environmental impact of Bitcoin mining. It’s also one of the top concerns for the Chinese government, which has recently stepped up its crackdown on cryptocurrency mining and trade.
The process of validating cryptocurrency transactions, which results in the creation of new coins, is known as mining. It necessitates vast computational capacity, which is largely provided by fossil-fuel-derived electricity. The Ethereum blockchain’s technology is considered to be more environmentally friendly than Bitcoin’s, and energy usage is projected to be dramatically decreased with Ethereum 2.0.
Furthermore, the Ethereum platform is said to be more adaptable, allowing it to be used for a wider range of applications. The ethereum blockchain has been used for auctions of non-fungible tokens (NFTs), games, and decentralized finance (DeFi) apps, among other things.