Why Ethereum is crushing Bitcoin…?

Krissanawat Kaewsanmuang
Published in
6 min readJun 9, 2021


Why Ethereum is crushing Bitcoin…?

There is high speculation that Ethereum outperforms Bitcoin by the end of the year 2021. This is mainly due to the drop in Bitcoin value to three years low of 42% in recent weeks. During this drop in market value, while all cryptocurrency values are dropping, Etheruem has managed to capture almost 19% of the total market. Moreover, Etheruem is still up by 280% while Bitcoin is up by just about 42–43%. Hence, the major focus is Etheruem is crushing bitcoin across most of the major matrices and this can be the right time to invest in Ethreum.

There is high speculation in the market that Ethereum will go on a bullish trend and reach 5 digit value or more in not so distant future. At present, the value of Ethereum is fluctuating around 2000 to 3000 dollars due to a dip in the market. The all-time high reached 4.7k USD and this has been a major drop in its value as well due to brutal correction and panic in the market. But this short-term panic happening in the market right now does not erase all the cool stuff happening with Ethereum. All the key metrics of Ethereum are exploding with a market cap of 269 billion dollars. It has the potential to reach a multi-trillion dollar market cap in the near future if you just look at its growth margin. The total value locked in smart contracts is up over nine thousand percent in the last 12 months. There is tremendous growth in total users coming in as well.

Just look at the graph above gathered from Statica. The growth pattern has been tremendous in recent months with a slight dip in recent weeks due to market correction and panic. This really indicates the potential for multi-trillion dollar market growth for Ethereum in near future. The recent growth in users is also the result of its genuineness and growth pattern.

The users just buy and hold Ethereum or maybe they send a stable coin transfer or something like that. They generally haven’t used decentralized finance to do some borrowing or some lending or some yield farming or some liquidity provision or to take out an insurance policy or to play the lottery or any of the other things that you can do right now with d5. The number of users still has a massive exponential growth potential here. So that’s something to keep in mind.

The recent data also shows decentralized exchange volume for Ethereum absolutely exploding up 8500 percent in the last 12 months. The user base and the actual economy of Ethereum are growing like crazy because there is a lot of actual stuff you can do on Ethereum. You can run a decentralized application, make transactions, and so on.

The economic activity of Ethereum is speaking for itself. And, it is actually crushing Bitcoin in this regard. Bitcoin has also facilitated some new stuff such as a sovereign network which is a sign of a kind of a d5 platform for bitcoin. But, most statistical people most people talk about the lightning network for bitcoin. This is a kind of framework where a lot of hopes were pinned to but what we’ve seen actually with the lightning network is that there is actually not a massive amount of volume coming in terms of people actually locking bitcoin into the network because bitcoin doesn’t fit super well for payments. For the most part, there hasn’t actually been a massive growth in the total amount of bitcoin locked in the lightning network. The lightning network has not grown for bitcoin whereas the Ethereum ecosystem has completely exploded. The total value is settled on the chain right now by Ethereum which is absolutely incredible.

Ethereum is settling on a chain of 46.37 billion dollars every single day that is massive beyond belief whereas bitcoin’s around 15 billion which is still a pretty hefty sum of money without a doubt which you have to keep in mind as well. Most of the bitcoin stuff is just people sending it to exchanges to sell it for cash or buying it on exchanges, withdrawing it to the cold wallets to hold on to it. It is simple and is termed digital gold. Whereas, people are actually using Ethereum for interesting stuff. They are borrowing, lending, doing all that d5 stuff, and buying NFTs. It’s being used in a way that bitcoin is not being used because there are no bitcoin applications.

There has also been a lot of issues with the energy used by bitcoin mining. But, we can right now that Ethereum is in the process of moving away from proof of work mining and moving towards a proof of stake. This removes the mess in the environment that mining causes. If we compare bitcoin mining versus Ethereum mining as it is today, they are not even comparable in terms of the amount of energy and infrastructure that bitcoin mining is using versus Ethereum mining.

Ethereum is upgrading itself as it moves towards proof of stake. Ethereum has an innovative approach to technological advancement whereas bitcoin is a hyper-conservative cryptocurrency. Ethereum is going to be running on like 1–1000th the amount of energy which is a massive upgrade.

Ethereum beats Bitcoin as a store of value the Ethereum ecosystem provides developers is massive as it provides ways to create new apps. Most of the d5 apps are being built on Ethereum now. The emission rate of Ethereum is going to be cut from around 4.5 percent down to 0.5. We have eip1559 which is going to introduce deflationary mechanisms into Ethereum which will see a small number of fees being burnt for every transaction. Every transaction that happens that over time turns Ethereum into a deflationary asset. This means that its store of value properties becomes much more serious. Hence, the price of Ethereum is likely to increase potentially quite dramatically over the next few years.

Without a doubt, ether beats bitcoin as a store value. With all the upgrades that Ethereum has put and will put into in the near future if it works then there is going to be an exponential growth in the market for Ethereum.

For the first time last month, institutional Ethereum inflows outperformed inflows into bitcoin. This is massive news in terms of how Ethereum is overshadowing Bitcoin. This shows that Ethereum is an asset that everyone should be paying attention to.


Ethereum is open-source digital money that facilitates data-friendly services to the public. It is the second most popular and valued cryptocurrency after Bitcoin. It is a decentralized computing network built using blockchain technology. Like most cryptocurrencies,

Ethereum works based on a blockchain network in a decentralized format where each participating user holds the identical copy of the public ledger contract.

It can be used to buy/sell products online as well as in trading. It has gained massive value and popularity in recent years. But the thing that is most popular about Ethereum is that it can be used to build applications that run on the blockchain. The application built can be used as a storage or transfer mechanism for personal data as well as handle financial transactions in a decentralized format.


Bitcoin is the most popular and valuable cryptocurrency to date. It works in the same principle as other cryptocurrencies and that is based on the blockchain network. It is a digital currency that does not exist physically and is only kept in ledgers as balances that the public has free transactional access to. This currency is created, stored, distributed, and traded using a decentralized ledger system.

It is the first cryptocurrency to use peer-to-peer technology to serve online payments and transactions. The bitcoin balances are kept in tokens which are applied with mathematical encryptions which deem them safe and secure.

In 2020/2021, the value of bitcoin skyrocketed to $63,000 which was the single most rise in the value of crypto coins. Although we know most of it was due to some random tweets from Mr. Musk, this dragged a lot of attention towards the cryptocurrency market.

As this article was written, the market is in a bit of a dip due to the Chinese government banning cryptocurrency. Bitcoin also lost its significant value due to Tesla backing out from accepting Bitcoin as a valid payment mechanism.

Now, coming to the main point. The article highlights the comparison between Bitcoin and Ethereum based on the present market and demonstrates why Ethereum is crushing Bitcoin.