BNB capitalization exceeded $100 billion for the first time in history. However, ETH is growing faster. Therefore, the undeclared goal of BNB – to win second place in terms of capitalization – is postponed to a distant future, and possibly will be defeated.
Now BNB capitalization is less than 30% of Ethereum’s capitalization, although recently this value was already above 30%. At the same time, the capitalization of Ethereum is already about 34% of the capitalization of bitcoin. Experts propose that by the end of the year we will see a change of leadership in the crypto market.
Ethereum has been growing continuously since the beginning of 2021. The new active phase of growth started on April 25 at a price of $2197, since then ETH has grown more than 50%. The trading volume, according to CoinGecko, is at least $40 billion per day. Analysts believe the leading altcoin is growing due to the update called Berlin which made transaction fees cheaper. With this, the Ethereum platform became attractive again to launch Decentralized Finance (DeFi). DeFi projects are a big share of the market now.
According to the defipulse.com service, investor funds raised by DeFi have doubled in three last months to over $71 billion. The creators of DeFi projects prefer Ethereum before Binance Smart Chain, because this network is time-tested and there is backed by a strong team, which is ready to fulfill the ETH 2.0 update.
Ethereum has at least three big advantages against bitcoin: higher functionality due to smart contracts; higher transaction speed; less dependence on derivatives. These three differences explain the lower volatility of ETH, according to analysts at JPMorgan Bank.
Ethereum’s stable liquidity will attract institutional investors more and more, so the price of ETH will continue to rise. JPMorgan considers Ethereum to be the backbone of the digital economy, meanwhile, experts say bitcoin still is digital gold and a store of value.
ETH has grown by almost 3,000% since the markets dropped during the first wave of coronavirus in March 2020. Bitcoin has grown by almost 1400%. This break will widen, says cryptocurrency veteran Raoul Pal. The analyst became very popular among the crypto community after he stated that any investments are a waste of time compared to cryptocurrency.
The expert once again repeated this thesis, backing it up with the following data: since the beginning of the year, BTC has added 95.87%, ETH added 274.75%. During the same time, even the most liquid commodities grew within 6-31%, only lumber jumped by 130%, but this is a one-time cumulative growth. Cryptocurrencies are growing constantly. Raoul Pal is confident that the growth of leading cryptocurrencies will continue at least until the end of the year. He states:
– My theory is that no investment will beat crypto this year and it will suck in more and more capital.