Wednesday, May 5, 2021

Ethereum Surpasses PayPal’s Market Cap as ETH Keeps Reducing Bitcoin Dominance

For the past couple of days, Ethereum (ETH), the second-largest cryptocurrency by market capitalization, has been showcasing a magnificent price trend against Bitcoin (BTC).

This positive trend and Bitcoin’s lethargic growth have drastically reduced the market dominance of the flagship digital currency.

Read Also: Vitalik Buterin donates about $600,000 in ETH and MKR towards India’s COVID-19 Relief

A couple of hours ago, Ethereum (ETH) hit a new price all-time high of $2,800 for the first time on the Bitstamp exchange.

Ethereum (ETH) Market Capitalization Surpasses PayPal’s

According to CoinMarketCap, Ethereum (ETH) is trading at $2,751 at the time of press, with a market cap of $319.7 billion. This implies that Ethereum is now bigger than the payments giant PayPal in terms of market valuation.

Going by the data provided by CompaniesMarketCap, the total market capitalization of the payments giant currently stands at $314.52 billion. This indicates that the largest altcoin has just attained a significant milestone.

Ethereum is now on the verge of scoring its seventh month in the green following the 45% price increase recorded in April so far. Obviously, there is still a large room for ETH to keep experiencing a similar positive trend.

On the other hand, Bitcoin (BTC) continues to trend sideways as Ethereum prints new price milestones, which brings the market dominance of the first and largest cryptocurrency below 50%.

Read Also: Crypto Analyst Luke Martin Names Altcoins That Would Outperform Bitcoin (BTC) In 2021

JPMorgan Says Ethereum (ETH) Could Outperform Bitcoin (BTC)

American banking giant, JPMorgan, has averred that Ethereum should outperform Bitcoin in the long run since it’s capable of capturing a share of the emerging crypto-native economy.

JPMorgan noted:

“Bitcoin (BTC) is more of a crypto commodity than currency and competes with gold as a store of value, whereas ETH is the backbone of the crypto-native economy and therefore functions more as a medium of exchange.”

Nevertheless, the banking giant stated that the flagship cryptocurrency has managed to weather the decentralized finance (DeFi) boom, which took the advantage of the slow growth of the total value locked in various crypto projects.

According to JPMorgan, Ethereum’s spot market depth recovered faster from the recent selloff compared to Bitcoin (BTC).

Read Also: Ethereum Booms in Anticipation for the Launch of ETH Futures By CME Group

The banking giant also mentioned DeFi and other parts of the flourishing Ethereum economy as the driving force of the digital token in terms of price:

“In combination with the continued growth for DeFi and other components of the Ethereum-based economy, this suggests some technical but occasionally important bullish tailwinds versus bitcoin.”

In conclusion, the Ethereum community should remember that the EIP-1559 is coming, as it’s also expected to enhance the bullishness of the digital token ETH.

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Solomon Odunayo
Solomon has a growing passion for writing, this propelled him to keenly work on Eagles News Media for about two years before delving into the cryptocurrency and Blockchain industry he finds more interesting. He worked as a crypto Journalist and Editor at NewsLogical before joining Herald Sheets, owing to the priceless experience he has accumulated since he became a contributor in the crypto community.

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