Bitcoin ($BTC USD) Vs Ethereum ($ETH): Which Cryptocurrency Price Is Better?

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The relative resilience of Ether in May’s cryptocurrency rout has put the spotlight back on the idea that the second-largest digital token could one day overtake Bitcoin by market value.

Right now the largest virtual currency is more than twice as big as Ether but the gap narrowed by about $350 billion in May, courtesy of one of Bitcoin’s worst drops and a smaller retreat in Ether. Fans of Ether cite its popularity for blockchain-based financial services and digital collectibles, as well as an ongoing upgrade to boost the efficiency of the affiliated Ethereum network.

Ether “will likely exceed Bitcoin at some point in the future, as Ethereum will be superior when it comes to innovation and developer interest,” said Tegan Kline, co-founder of blockchain software company Edge & Node. But she also said that investors should be allocating capital to both tokens.

The speed of change in the crypto sector makes prognostication perilous. Even so, Goldman Sachs Group Inc. strategists and star investor Cathie Wood are among those who highlighted Ether’s potential recently. More broadly, interest in virtual currencies has expanded out beyond Bitcoin, whose share of $1.6 trillion in total crypto market value is down to 42% from about 70% going into 2021, according to data from CoinGecko.

In a report last week, Goldman commodity strategists Mikhail Sprogis and Jeff Currie wrote that Bitcoin’s first-mover advantage appears “fragile,” adding there’s a high chance it will “eventually lose its crown as the dominant digital store of value to another cryptocurrency with greater practical use and technological agility.”

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