Ethereum Outperforms Bitcoin, Boosted by Proof-of-Stake Switch

Share on Facebook Share on Twitter

Ethereum surpasses Bitcoin: What’s behind it?

Over the past seven days, Ethereum (ETH) has put on an impressive performance, significantly outpacing Bitcoin (BTC) in terms of value increase. The second-largest cryptocurrency by market value was able to increase by 16% during this time, surpassing the $2,900 mark for the first time in almost two years. In comparison, the Bitcoin price rose by a comparatively modest 8.5% to $52,300, as data from CoinDesk shows.

Why Ethereum is outperforming Bitcoin

Greg Magadini, Director of Derivatives at Amberdata, sees the reason for Ethereum’s outperformance in the fundamental data of the cryptocurrency. Unlike Bitcoin, whose supply is only growing slower due to the upcoming “halving”, Ethereum has seen an active reduction in supply since switching to the Proof-of-Stake consensus mechanism in September 2022.

Ethereum burning leads to supply shrinkage

Since the switch to Proof-of-Stake, also known as “The Merge”, 1,047,643 ETH have been issued and 1,407,200 ETH have been burned, i.e. removed from circulation. This has led to a net reduction in the ETH supply of 359,557 ETH or 0.209% year-on-year, as reported by the data tracking website Ultrasound.money. During the same period, the Bitcoin supply increased by 1.71%.

alert-circle
You can also find us on Telegram: Click here to follow our Telegram channel.

ETH staking and ETFs could further reduce supply

In addition to reducing supply by burning Ethereum, staking also contributes to scarcity. Here, ETH is deposited into the network to participate in the consensus mechanism and secure the blockchain. The number of ETH deposited into the network exceeded the 30.1 million mark earlier this month, representing 25% of the total circulating supply.

In addition, soon-to-be approved Ethereum ETFs in the US could further reduce supply by putting ETH into cold storage. Several major financial firms, including Franklin Templeton, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco and Galaxy, and Hashdex, have already applied to set up such an ETF.

Conclusion

The combination of supply shrinkage through burning and staking, as well as the potential introduction of Ethereum ETFs, makes the fundamental data for Ethereum look extremely positive. It remains to be seen whether Ethereum can continue its outperformance against Bitcoin.

Sources: Amberdata, CoinDesk, Ultrasound.money

Share on Facebook Share on Twitter
Casinos: 46
Profile Ethereum
Symbol ETH
Coin type Alt Coin
Transaction Speed Medium
Pros
  • Second largest cryptocurrency
  • Accepted in many casinos
  • High transaction speed
Cons
  • Partial bugs in smart contracts
Price 3.361,94 €
Percent Change 24h 1,04 %
Percent Change 7d -2,97 %
Percent Change 30d 16,50 %
Percent Change 60d 18,76 %
Percent Change 1y 109,31 %
Market Cap 404.387.253.645,00 €
Official Links
Socials Reddit | X
Best 3 Ethereum casinos

Latest News

Created by

I have enjoyed following the international iGaming industry since my first encounter at the age of 23. Fascinated by its diversity and complexity, I was hooked and have never left the industry since. Here at KC, I am a proud member of the founding team as well as the content team. We use everyone's knowledge to find every possible flaw in a casino so you can relax and play.
Reviewed by
Nerd of Numbers

Last update: 11. June 2024

kryptocasinos.com Logo Advertising transparency

We are independent, transparent and funded by revenue we generate when you sign up at a casino through us.

Our goal is to help you make better decisions when choosing a casino by offering different information, providing filters and comparison tables, and publishing objective content. Thus, we give you the opportunity to research for free, compare casinos and make your decision based on that.

We cannot guarantee that a casino that is very good for us will fit your type of player and your circumstances.

Why trust us?

We work according to transparent editorial guidelines and disclose our testing methods as well as funding. This article may contain links to our partners, but this does not influence our objective view in any way.

🍪
We use cookies. By using this site, you accept them.