Ethereum, the decentralized blockchain platform has been growing exponentially since the beginning of the year. This impressive growth rate has established Ethereum as the second largest cryptocurrency in the market after Bitcoin.
Bitcoin has also been growing very fast during the same period. However, its growth is taking place at a much slower pace than its biggest rival. This has led many Financial Analysts to reach the conclusion that if the current growth rates continue, Ethereum could overtake Bitcoin and become the largest cryptocurrency in the market very soon.
Bitcoin’s and Ethereum’s market capitalizations
Based on data from CoinDesk, as at Wednesday June 14, Bitcoin had a market capitalization of approximately $45 billion and was traded at just under $2800. This represents a market share of about 39%. Bitcoin’s market share was at around 87% in February. This simply means that even though Bitcoin is still growing and making substantial value gains, other cryptocurrencies in the market are growing much faster and are making more substantial value gains. This is why Bitcoin is losing market share to its rivals despite the fact that it is still growing.
On the other hand, Ethereum has been growing at a much faster rate. As at Wednesday June 14, Ethereum’s market capitalization had reached $36 billion and was being traded at approximately $390.
According to CoinDesk, Ethereum has had more than 3000% since the beginning of the year. This simply means that its value grew more than thirty times in less than six months. The only word that can describe such an impressive growth rate is exponential. In simple words, this means that the growth rate of Ethereum becomes faster and faster as time passes increasing its size several times.
Reasons for the imminent flippering
The above data have led many financial analysts to reach the conclusion that the cryptocurrency market will soon experience an imminent flippering. A flippering occurs when the market leader is overtaken by one of its rivals. This means that Ethereum is expected to become the cryptocurrency market leader very soon.
Ethereum has been getting more and more publicity and media attention since the beginning of the year. This is mainly because the company’s founder, Vitalik Buterin, was able to promote the blockchain at the highest level by having meeting with people like the Russian President Vladimir Putin to discuss possible cooperation that received a lot of media coverage.
Additionally, Ethereum responded effectively to the growing Interest in blockchain technology by governments and other official authorities across the world from countries like Russia, China and Singapore. This has differentiated the blockchain platform and is one of the reasons that have sky-rocketed its value since investors can see a lot of potential in it.
Furthermore, Ethereum managed to dominate the new hot market trend of Initial Coin Offerings ICOs because it offers a flexible and extensive blockchain platform. This makes it very easy and fast for the developers of various start-up cryptocurrencies to build and launch their own digital tokens.
Last but not least, Ethereum has become so popular, not simply due to its functionality, speed and media coverage. It has become so popular because its users and investors trust the blockchain. It is very impressive that Ethereum has managed to achieve so much in just five years.
