Usually, when talking about market structures and price trends, BTC and ETH are rarely compared. That is because their underlying fundamental values are immensely different. However, a certain whale said that ETH could be a better digital gold than BTC soon.
ETH is considered to be an ecosystem backbone while Bitcoin is perceived as a “digital gold” and a store of value. The massive majority of the actively used crypto space usually goes through the ETH blockchain.
In the near term, the gap between the two cryptocurrencies when it comes to their underlying similarities may start fading. One early ETH investor noted that the ETH network could soon be a “better digital gold than BTC” with two changes.
During a discussion about the lack of institutional involvement in ETH, these comments came to the surface. Moreover, he thinks this will soon change.
He is referring to the Proof-of-Stake consensus system incorporated under ETH 2.0 and Ethereum Improvement Proposal 1559 as grounds why ETH would soon inherent gold-like properties.
Ethereum Underperforms Bitcoin as Institutions Drive Ongoing Rally
Many are thinking that “smart money” and institutions are pushing the current Bitcoin rally.
The cryptocurrency was able to stabilize around $18,000 because of the intense uptrend. It seems that bulls are winning despite the immense selling pressure around here.
Bitcoin is so near to setting new all-time highs. On the other hand, ETH has a long way to go before achieving its 2017 highs of over $1,000 and is still stuck below its 2020 highs of $490.
Buying the crypto because of the “digital gold” narrative and the institutions driving this Bitcoin upswing may be the reasons for BTC’s underperformance.
ETH Whale Claims It Will Soon Flip Bitcoin as the Superior Digital Gold
A purported whale, Tetranode, who gained his position around $1.00, shared his thoughts in a tweet. He said that PoS issuance and EIP-1559 will be the cause of the negative inflation and will allow ETH to flip Bitcoin as a superior digital gold.
This network will change a narrative about Ethereum being a store of value. Once it does, it could definitely see huge inflows from institutions who want to diversify across multiple digital assets.