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From "flippening" to 11% market cap. Why is Ethereum so weak relative to Bitcoin right now?

From "flippening" to 11% market cap. Why is Ethereum so weak relative to Bitcoin right now?

All Cryptocurrencies

by COINS NEWS 16 Views

Early 2017, when Bitcoin was fighting over the blockchain size debate, people started looking for alternatives. At some point, some started noticing that Ethereum was an objectively better technology; not in a trivial sense like "it has faster transactions", but in a fundamental level: Bitcoin's inability to execute computer programs made it incapable of settling non-trivial monetary exchanges in a decentralized way, resulting in an ecossystem that was nothing but a constellation of centralized services on top of a decentralized balance tracker. This realization caused many to speculate that Ethereum would eventually overcome Bitcoin, at least under the assumption that the market would seek a fully decentralized economy, and not just a big fat decentralized store of value. Of course, this belief was speculative, but it was a strong enough case to cause Ethereum to almost surpass Bitcoin back then. Fast forward a few years, Ethereum is now sitting at a boring 11% of Bitcoin's market cap with no signs of revival.

My question is: what changed? Is the market betting that people won't care about decentralized economics and that a decentralized store of value will be enough? Is the Ethereum network losing its momentum or is it inferior in any sense? Are there competitors to Ethereum itself with a huge potential of overcoming it? Is 11% of Bitcoin's market cap a fair price for the only alternative currency with a non-negligible potential of overcoming it?

submitted by /u/LeagueOfEkko
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