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The “August Crypto Outlook” by Bloomberg revealed that the Bitcoin rally is more trustworthy than that of Ethereum, which is said to be “more speculative”.
Bloomberg recently released its August crypto outlook report, which reveals that the Bitcoin (BTC) rally is based on fundamentals, unlike Ethereum (ETH). According to the report, the Ethereum rally is ‘speculative’ while solid foundations back the rise in Bitcoin.
Bloomberg releases a monthly publication called ‘Bloomberg Crypto Outlook.’ In the August edition, the media company expressed some disbelief in ETH’s rally, referring to it as ‘speculative.’ In contrast, the Bloomberg publication was more positive about Bitcoin and the recent increase in the king coin’s price:
“Ethereum has extended last year’s highs and leaped to one of the top-performing major crypto assets in 2020, but we view its rally as more speculative vs. the favorable demand vs. supply conditions supporting Bitcoin.”
Bloomberg Speaks on Price Increase in Ethereum and Bitcoin
Contrasting ETH and BTC, Bloomberg pointed to the gold-like attributes that Bitcoin possesses and the high demand from institutional inventors. Bloomberg believes that these qualities play significant and positive roles in the increase in Bitcoin’s price. However, the publication revealed the reason behind the description of Ethereum’s rise as speculative. The report showed that Ethereum battles with “plenty of competition from similar crypto platforms and about 6,000 tradable coins.”
In addition, data from DefiPulse.com revealed that DeFi hit all-time-high, a total locked value of $4 billion. As a result of this recent growth in the DeFi space, Ethereum’s value has appreciated. Even some analysts compared the value appreciation to the previous ICO boom.
At the beginning of July, ETH traded at $225.5 and the price has surged significantly since then. According to CoinMarketCap, ETH is presently trading at $395.23 with a market cap of over $44 billion. Coincidentally, the increase occurred at the time Ethereum celebrated its fifth anniversary. Currently, BTC is trading at $11,702.22, with a market cap of over $216 billion.
Ethereum and Bitcoin Competitors
Bitcoin remains the top crypto with its popularity, user base, and market capitalization. Despite Bitcoin’s large user base and popularity, other digital currencies are also gaining massive and increasing popularity in the crypto world.
A report by Investopedia confirms, unsurprisingly, that Ethereum is the primary alternative to bitcoin. The market’s second-largest coin has grown significantly over the years, with an impressive community.
However, as smarts contracts develop, competition is becoming stronger in the DeFi market. Jaye Harrill, Quantstamp communications manager, told Cointelegraph that Cardano might be the second only to Ethereum by the end of this year. Also, another report by Investopedia revealed Cardano as one of the “four blockchain contenders in competition with Ethereum.”
The market data aggregator, Messari, reported Ethereum as the most valuable asset class in 2020. Following the market fall caused by the coronavirus pandemic, Ethereum and its decentralized apps have gained 130% in year-to-date performance.
Also, on the 4th August, Ethereum 2.0 multi-client testnet went live with over 20,000 validators. The multi-client testnet, Medalla, is the first public testnet for Ethereum 2.0 before the launch of its mainnet.