The market share between Ethereum and Bitcoin has gone much tighter over the previous few weeks, as Ethereum extends its impressive run. Ethereum reaching $2,900 means it has once again set a new record high on the 2nd of April as per the Trading View statistics. ETH has maintained its impressive run by gaining a whopping 14% since the past Friday.
As per the data from Santiment, both assets market share has been closer than before. Recently, Bitcoin had seen a drop in its market share by 49.73%. The last time we witnessed this level of drop, was in July 2018.
Even though Ethereum is enjoying an immensely successful run, its market share is still 15.6%, far lower than the altcoin boom when it pushed to 23%. Similarly, other altcoins like LTC and XRP were equally competing effectively and were maintaining a significant market share.
Companiesmarketcap.com states that presently Ethereum sits $6 billion higher in market capitalization than PayPal, which has a market cap of $314 billion.
A beast when it comes to passive income
A vast number of factors are behind the bullish run of Ethereum as stated in a note issued by JPMorgan to investors. Lark Davis, a Youtuber and a blogger spoke that the economic model for the future for Ethereum ensures it would be a coherent passive earning method hence the YouTuber believes he will never sell his Ethereum.
After the last Berlin upgrade earlier this April, many significant upgrades are on their way for Ethereum.
Deflationary Ethereum
London, the latest upgrade for Ethereum, is expected to release in July that includes EIP-1559 which will finally introduce a system to correct the auction process that controls the cost of the transactions. This upgrade will allow the users to bid lowest for a block. However, it might not lower gas prices when the system is under a significant load.
The system that will be set in place will reduce a certain amount of fees leading to Ethereum deflation more than what is expected when it switches from 1.5 Phase to Ethereum 2.0.
All these factors added up for Ethereum to be, deemed ‘the currency of the internet’ since retail investors and institutions are still buying, even when the prices are skyrocketing.