Ethereum May Outperform Bitcoin in Next Three Years
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Source: Fool
- Bitcoin's Strong Performance: Over the past three years, Bitcoin's price surged by 145%, while Ether only increased by 16%, highlighting Bitcoin's appeal as 'digital gold' due to its scarcity and attracting more investors.
- Ethereum's Mechanism Shift: Ethereum transitioned to a more energy-efficient proof-of-stake mechanism in 2022, with a circulating supply of 121 million tokens and no supply cap, yet it faces competition from faster blockchains like Solana and Cardano.
- Future Upgrade Plans: Ethereum plans to enhance scalability, reduce network congestion, and lower gas fees through three major upgrades (The Verge, The Purge, and The Splurge), reinforcing its position as the largest blockchain development platform.
- Market Environment Changes: As interest rates decline, more investors may opt to stake their Ether tokens for higher yields, and this shift in market conditions could lead to greater returns for Ether over the next three years.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
