Since the maximum drop in mid-June, the growth of Ethereum has significantly exceeded the increase in the value of Bitcoin – investors are expecting a major update to the blockchain of this cryptocurrency.
Bitcoin hit a low of $17,601 on June 19, according to data from CoinDesk, and has risen about 31% since then.
Ether also hit its recent low on June 19 at $880.93 and has risen 106% since then.
The big difference in the growth rate of the two cryptocurrencies comes down to one important factor: a major upgrade to the Ethereum blockchain.
Ethereum’s long-delayed upgrade, referred to as the “merger”, is set to take place on September 15th . Blockchain will change from a so-called Proof of Work system to a model called Proof of Stake. This move will make the Ethereum network faster and less energy intensive.
“A blockchain that positions itself as energy efficient will always grab the attention of the masses, which is why Ethereum is blowing its sails ahead of the merger, transition to proof-of-stake,” said Anthony Trenchev, co-founder of Nexo, a cryptocurrency trading platform.
Both Bitcoin and Ethereum are still priced over 60% below their all-time highs from November. The industry has been plagued by multiple bankruptcies and liquidity issues, as well as failed projects, which have combined to see the market lose $2 trillion since its November peak.
A number of analysts expect Ethereum to stop growing at around $2,000, while others predict further growth due to the absence of meetings of the US Federal Open Market Committee in August. Any delays in the upcoming blockchain update will negatively affect growth, but even in this case, its pace will be higher than that of Bitcoin.
For the first time since mid-June, the Bitcoin exchange rate briefly rose above $25,000, and Ethereum – over $2,000
Source: CNBC
