Recently, Bitcoin surprised everyone again by updating its historical maximum and exceeding the $75,0001 mark. But why can’t altcoins like Ethereum boast the same success yet? Let’s find out.
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Bitcoin growth factors:
Political Support: The recent US presidential election and Donald Trump's support for cryptocurrencies played a significant role in the growth of Bitcoin2. Trump promised to create favorable conditions for crypto business, which attracted investors.
Institutional Investment: Large financial institutions continue to invest in Bitcoin, increasing its price and confidence in it as an asset3.
Limited supply: Bitcoin has a limited supply of coins (21 million), making it a scarce asset and driving up its price.
🤔 Why is the broadcast lagging?
Technical Updates: Ethereum is in the process of migrating to Ethereum 2.0, causing uncertainty among investors. While the upgrade promises to improve the network’s scalability and security, it also creates temporary risks4.
Competition: Ethereum faces competition from other smart contract platforms such as Solana and Cardano, which is slowing its growth.
Use Case: Bitcoin is more often used as a store of value and “digital gold,” while Ethereum is more focused on decentralized applications and smart contracts, making it more vulnerable to changes in demand for these technologies5.
💡 Is Ether Undervalued?
Ethereum may indeed be an undervalued coin. Its potential in the field of decentralized finance (DeFi) and smart contracts is huge. With the transition to Ethereum 2.0 completed and interest in DeFi growing, Ethereum may see significant growth in the future.
📢 Conclusion:
Although Bitcoin is currently at the top, Ethereum and other altcoins should not be written off. The crypto market is dynamic and unpredictable, and each asset has its own unique advantages and prospects.
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