Bitcoin vs Ethereum: Which Crypto Whales Stack Up?

by James · February 21, 2023

The cryptocurrency market has been a hot topic recently, with investors trying to predict which digital asset will provide the best returns this year. As the market shows an improvement, Bitcoin and Ethereum continue to compete for dominance. While altcoins can offer significant gains, Bitcoin and Ethereum remain the two largest high-caps and remain the most popular investments in the crypto world.

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Ethereum’s Deflation Advantage

According to Altcoin Daily, Ethereum is currently in a unique position. Network activity increases and the Ethereum supply pie decreases, making Ethereum a deflationary asset, which is a huge benefit for investors.

Ethereum has been around for eight years, and during this time we have seen many decentralized applications flourish on top of Ethereum. These dApps, like DeFi and NFTs, take supply from the market, making Ethereum an even more attractive investment.

Blockchain Gaming and NFTs

Blockchain games are becoming the next big thing in the crypto world, just like NFTs in 2021 and DeFi in 2020. In-game assets become NFTs that users truly own, and the promise of turning in-game items into NFTs – is about to become a reality. This development could be a significant factor in Ethereum’s future success, given that Vitalik Buterin was inspired to build Ethereum because of a game, World of Warcraft.

Bitcoin’s Time Cycle

In contrast, Bitcoin’s time cycle shows that it is entering a re-accumulation phase. The number of Bitcoin whales has dropped to its lowest level since 2019, while smaller investors have gradually increased over the past five years. Mega whales holding more than 10,000 Bitcoin are near all-time highs.

Ethereum vs. Bitcoin

Although it is difficult to accurately compare Bitcoin and Ethereum, Ethereum’s potential is becoming increasingly clear. With NFTs, blockchain gaming and the use of the recent upgrade, EIP 1559, the Ethereum network has become a deflationary asset since mid-January of this year. The more adoption, interest and trading volume the Ethereum network sees, the scarcer the asset can become.

Only time will tell which cryptocurrency will experience the biggest rise this year, but Altcoin Daily’s personal opinion is that Ethereum will have more significant returns than Bitcoin going forward for the next couple of cycles.

At the time of writing, Bitcoin is worth $24,754 and Ethereum is worth $1,682.