Ian Balina, the Founder and CEO of Token Metrics-a data driven research platform for crypto, is confident that Ethereum’s market cap will surpass Bitcoin’s in the next decade. At the time of press, Bitcoin is the most valuable digital asset with a market cap of $129 billion. With this, BTC is the most dominant, controlling a 67% market share. On the other hand, ETH has a market cap of $14 billion and lodged at second place.
Rise of DeFi and Stablecoins a Big Plus
Prediction: Ethereum surpasses Bitcoin in market cap in 2020s.
This is inevitable.
— Ian Balina ???? (@DiaryofaMadeMan) December 31, 2019
Ian is of the view that even though Bitcoin is great, it will not continue enjoying the first mover advantage of the last decade. Instead, he sees several trends converging and with developers embracing Ethereum, innovation follows the platform. Besides, the lack of leadership in Bitcoin combined with the steady growth of DeFi–or open finance, and stable coins is a big plus for Ethereum.
“I see several trends converging. Bitcoin is great, but cannot rest on having a first mover advantage over the next 10 years. Developers have embraced Ethereum. Meaning innovation has embraced Ethereum.”
If anything, most stablecoins are built on Ethereum. There are over 60 stablecoins in the market and over 120 are in development. For the presence of an in-built logic and regulation and the fact that its tokens are more compatible with existing infrastructure because of the proliferation of its ERC20 tokens give it an edge over competitors.
Don't forget about that Ethereum already brings far more innovation and will establish itself further through Stablecoins, DeFi, NFTs and DEXs. Been using @uniswap to get $MKR and testing out liquidity pools all nice and decentralized. pic.twitter.com/lySJoZQgA2
— Crypto Art (@BitcoinCartoon) January 1, 2020
Ethereum is an improvement of Bitcoin
Ethereum is the second most valuable cryptocurrency project and like Bitcoin in some aspects, it enjoys first mover advantage in that it is the pioneer smart contract platform that brought forth asset tokenization and other possibilities absent in Bitcoin.
Bitcoin, in its pure form, aims to reduce the cost of remittance, eliminating third parties, that is banks, and bringing back control to the masses. On the other end, Ethereum introduced smart contracts which digitized and automated traditional contracts.
Ethereum, created with its programming language, Solidity is also the most active, attracting more developers than Bitcoin and competitors including Tron and EOS. The latter are ranked higher by China’s Center for Information and Industry Development (CCID), a research institute under the Ministry of Industry in Information Technology.