During the second half of 2022, we saw a growing interest in cryptocurrencies from investors and big financiers. However, all the attention of the whales, as well as all the attention of the public, is on Bitcoin (BTC). Today, we will look at why Ether (ETH) is the more attractive asset and why it should be the “first cryptocurrency” for every investor.
Let’s start with the numbers: The rise in ETH since the March 2022 low following the coronavirus-induced market crash was 12000%, while BTC was only up about 700%. Of course, against the backdrop of record highs for Bitcoin, which has cost as high as $40,000, Ether’s rise to $1,400 doesn’t seem very impressive. In addition, the market capitalization of ETH is five times less than the market volume of BTC.
There are very strong reasons to believe that the price of Ether will continue to rise in 2022 and bring more returns to investors than the “most famous cryptocurrencies,” Bitcoin.
Many Requests from Developers
Ethereum is the number one platform for building blockchain projects and launching decentralized applications. Despite the fact that the market expansion rate for blockchain startups has slowed since the ico bubble burst in 2018, their total number is still growing.
Currently Ethereum has serious competitors – such as Tron, Polkadot, Cardano, Cosmos and Tezos – cryptocurrency platform Vitalik Buterin continues to be the leader in this regard.
Increased Transaction Volume
During 2022, more than $1 trillion of transactions were recorded on the Ethereum blockchain. These figures exceed the volume of payment transactions such as PayPal, which is used by more than 350 million users and has an average volume that generally does not exceed $200 billion per quarter.
Also, keep in mind that each transaction results in a network fee which is paid in ETH. And since the growth rate of the network is still high, we can confidently expect the continuation of the “bullish” trend of ETH. However, interest in cryptocurrencies is increasing, as is the number of active wallets, the number of transactions on the network and the average transaction size.
DeFi sector development
Despite Bitcoin’s leadership in the cryptocurrency market, Ethereum remains the leader of the young decentralized finance industry. Very popular in 2022, DeFi lending and stake projects continue to grow, attracting new investments.
The total value locked in decentralized finance since the start of 2022 has grown by nearly 3,300%, from $687 million to $23.2 billion. And Ethereum which is the main platform for the creation and launch of most new DeFi projects and stablecoins.
Stablecoin emissions are constantly evolving, as digital assets backed by less volatile fiat currency values are a very convenient tool for quick settlement between users, for forming trading pairs on crypto exchanges and for saving capital from high volatility in your crypto wallet.