Bitcoin Moving into the Ethereum Ecosystem at an Alarming Rate
Ethereum is the second-largest crypto by market cap. There are two major variants of Ethereum, ETC or Ethereum Classic, and Ethereum 2.0 or ETH. The second-largest crypto variant is ETH. The domination of ETH in the crypto market can be measured in many aspects. The network is aiming for a fork event eventually that would merge both ETH, ETC once again. At present, Gwei or gas prices on the Ethereum network have experienced a monumental drop.
According to crypto analysts, this drop went back to the levels in 2020. For Ethereum, it is an important time as it has started to lead the crypto parade in many respects. There have been notions in the past of a Flippening event, a hypothetical scenario where Ethereum would take over the numero uno spot in the crypto-verse. However, the recent market crash of Bitcoin has proven otherwise.
While it is true that most altcoin appreciations are still pegged to the health and well-being of Bitcoin, there are some ways that Ethereum can outrun Bitcoin. One of these fields is the daily trading volumes. In comparison to Bitcoin, Ethereum DTV has increased by many folds. The rise started from December 2020 and kept en route up until June 2021. In comparison to $12.02 billion worth of Bitcoin transactions, Ethereum hosts about $45.253 billion per day.
However, such a great feat was unable to divert the attention of Ethereum proponents from the delayed system upgrade. Some of the crypto maximalists were so disappointed that they went on to call the network a failed project. However, it has been noticed that there are still $14 billion positions on ETC waiting for the eventual merge.
Possibly more Bitcoins would be Moving to the Network in Future
In recent years, Bitcoin has also received backlash for its consensus model. There are not many ways to make sure that Bitcoin would be able to upgrade to proof of stake. However, it has started to find a new way to deal with this issue. The numbers of Bitcoin migrating to the ETH network have increased at an alarming rate in recent years. There were only as many as 1000 BTC on Ethereum one year ago. However, the number has increased to about 230,000 Bitcoins in 2021.
This volume makes up for more than1% of the entire Bitcoin. As noted by crypto analyst Nick Chong, the numbers of Bitcoin transactions on the network have increased about the improving use cases of the DeFi. In the beginning, DeFi only could perform unilateral functions like borrowing with MakerDAO. However, now more advanced use cases like asset management, trading, synthetics, and derivatives could be supported on DeFi.