Can The Top Altcoin End Bitcoin’s Dominance Post Merge?


Dubbed the ‘leader of all altcoins’, Ethereum (ETH), is carrying the burden and pressure to replace Bitcoin (BTC) as the king of all cryptocurrencies.

So far, you haven’t succeeded or come close to completing that task. Not even the merger could catapult Ethereum to the top and frankly, it wasn’t even able to leave a hole in the wall that was built by Bitcoin to maintain its position.

In terms of price, there is a huge gap between the original cryptocurrency. Tracking from CoinGecko shows that as of this writing, Bitcoin is trading at $19,003 while Ethereum is at $1,338. Both currencies have seen price drops over the past seven days, by 5.8% and 14.9%, respectively.

Image: Zipmex

Misplaced confidence and hopes for integration

Last July, during an interview, Ethereum researcher Vivek Raman expressed his confidence that The Merge will enable the altcoin alpha to drop its biggest hurdle and bypass Bitcoin, becoming the new pre-eminent digital currency.

The merger refers to the upgrade completed in September that would put Ethereum into a Proof of Stake (PoS) system. It was also seen as changing the monetary policy of the network, making it more environmentally friendly while reducing the supply of ETH.

But since the migration, Ethereum has not been able to respond with a proper upward trajectory. Instead, along with Bitcoin and all other altcoins, it continues to deal with price drops.

A moment of victory for Ethereum

While it still fails to rise to the same level of prominence as Bitcoin, Ethereum had a moment of victory over the crypto king after The Merge, thanks to a strangely notable trend reversal in the crypto market.

The dominance of Bitcoin trading ended abruptly after ETH trading volume surged to even higher heights and eventually reached an all-time high.

However, experts believe that the effect of the merger with Bitcoin will be minimal and there will be price movements resulting, and it will be a transient effect. This is because switching to a Proof of Stake mechanism has always been a part of Ethereum’s plan since day one.

Alex Miller, CEO of Hiro, said that Bitcoin has already established itself as a “core asset,” calling the cryptocurrency “digital gold.” For that matter, he believes that Ethereum outperforms its competition in terms of market capitalization remains unlikely as of this time.

ETH total market cap at $165 billion on the daily chart | Source: TradingView.com

Featured image Coinpedia, Chart: TradingView.com
(The analysis represents the author's personal views and should not be construed as investment advice).



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