As crypto prices start to recover from the bear market, investors begin their hunt for the most profitable crypto investment. Those at the very top are the ones that usually catch the eyes of hungry investors.
Bitcoin and Ethereum are the cryptocurrencies that take first and second place on the crypto market cap charts. It is no wonder that BTC to ETH is one of the most traded pairs on the market. In this article, you will learn about the current state of these crypto projects and the prospects of investing in Bitcoin and Ethereum.
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Current Situation With BTC on the Market
With a market cap of over $400 billion, Bitcoin is the most popular project amongst crypto investors. Since it represents a significant chunk of the crypto pie, the changes in Bitcoin’s performance influence the whole market.
BTC Price Tendency
In June 2022, BTC reached the lowest price in almost two years — $17,744. Some experts believe that the BTC price will continue to fall due to macro factors like an increase in energy costs and the ongoing war in Ukraine.
As of today, one bitcoin is traded for about $23,000. The price is slowly recovering. Sources like Priceprediction.net believe that BTC can bounce back to $41,180.9 this year.
Technology Base
Bitcoin was the first cryptocurrency that implemented blockchain technology and used the proof-of-work consensus mechanism. It is primarily used for decentralized money transactions and long-term investments.
With its limited maximum supply of 21 million BTC, Bitcoin is managing to keep its inflation rate at about 1.8%. Crypto experts say that BTC’s inflation will only decrease with time driving the coin’s price higher.
Latest News
The cost of mining one bitcoin dropped from around $24,000 to $13,000 as estimated by JPMorgan. It will have a positive effect on the BTC price as more miners are expected to enter the market and add liquidity to it. However, the possibility of the Federal Reserve raising interest rates this July is one of the chief reasons the BTC price has been moving down for the past couple of months.
Global Use
The main idea of Bitcoin is to provide access to a decentralized store of value for the unbanked. Various companies like Microsoft and Virgin Airlines accept BTC as a payment method. Most people prefer investing in BTC because of the high return on investment rates it’s shown over the years.
Current Situation With ETH on the Market
Ethereum has the second-largest market cap of $180 billion. With $54.3 billion, Ethereum is also the largest blockchain by total value locked in DeFi. It shows that lots of people believe in the success of ETH.
ETH Price Tendency
The price of ETH stands at about $1,540 per token. ETH’s all-time price was $4,891 in November 2021. Since November 2021, the ETH price gradually declined and entered the current bear market. According to Priceprediction.net, ETH will be worth $2,898.6 by the end of 2022.
Technology Base
Ethereum is planning to move from proof-of-work to a proof-of-stake consensus in 2022. This process is called The Merge, and it will cut down the ETH network’s energy consumption by 99.95% (from 112 TWh/yr to only 0.01). The Merge will also increase throughput from 15 TPS to up to 100,000 TPS driving the ETH price sky-high.
ETH developers also plan to implement the Sharding technology by 2023. It will significantly increase the security and scalability of the Ethereum network.
Latest News
Recently, Ethereum announced that The Merge will occur in September 2022. It’s a significant moment for the entire market because many altcoins and stablecoins exist as ERC20 tokens on the ETH blockchain, including USDT and Shiba Inu.
Global Use
Ethereum is home to most NFT and Metaverse projects. The largest decentralized finance (DeFi) apps like Uniswap are also built on the Ethereum network. It means they pay fees in ETH and are dependent on the platform. The better Ethereum performs, the more benefits other ERC20 tokens get.
Choosing Between #1 and #2 Crypto in the Crypto Industry
Bitcoin and Ethereum will definitely bounce back from this year’s bear market. In terms of long-term price gains, there is no cryptocurrency like Bitcoin. And when it comes to technologies, Ethereum looks more promising especially for trading it for different coins like ETH to LSK pair.