• Bitcoin remains the number one cryptocurrency
• Very mixed 2022 for crypto enthusiasts
• Analysts see opportunities for Bitcoin’s sister Ethereum
A turbulent year in the cryptoverse has come to an end. The year 2022 presented great challenges for digital currency enthusiasts. There was a sharp correction immediately after Bitcoin set a new all-time high of just under $70,000 at the end of 2021, then the collapse of the algorithmic stablecoin Terra/LUNA sent shockwaves through the entire banking industry. crypto and led to the first insolvencies themselves. The lackluster market environment made recovery difficult, the scandal surrounding the bankruptcy of crypto exchange FTX did the rest to further destabilize the crypto sector.
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Ethereum merger 2022
However, it wasn’t all bad news in 2022. The second-largest cryptocurrency by market capitalization, Ethereum, experienced the long-awaited merger in September, in which the blockchain moved from the proof process energy-intensive work to the proof-of-stake process, which greatly reduces the energy requirements of cybercurrency and the rate of inflation. However, the hoped-for push for the Ether cryptocurrency price did not materialize after the merger.
Analysts see opportunities for Ethereum
But what is the outlook for 2023 for the two crypto giants Bitcoin and Ethereum? Until now, the original cybercurrency BTC has always been able to assert itself at the top of all digital currencies in terms of market capitalization. Bitcoin is also the big winner when looking at the respective highs of the two currencies, namely USD 68,789.63 for Bitcoin and USD 4,891.70 for Ether. However, due to the many possible applications of the Ethereum blockchain, which has proven to be an important factor in the field of decentralized finance (DeFi), this trend may reverse in the foreseeable future. This is at least the conclusion reached by various analysts.
For example, confessed Bitcoin bull and Bloomberg analyst Mike McGlone. As reported by Cryptonews, he recently predicted that Ethereum is likely to overtake Bitcoin in the next bull market, as Ether has outperformed its big brother in relative terms since 2021.
Bitcoin crosses series; Ethereum may be the best candidate to continue to outperform the first born crypto –#Ethereumadvances vs. #Bitcoins have been unwavering by 2022 deflation in most risky assets and could gain ground. pic.twitter.com/mLRMO4vpQr
-Mike McGlone (@mikemcglone11) December 20, 2022
The price ratio of Ethereum over Bitcoin has increased, sometimes less, but continuously since the beginning of 2021, the last crypto bull market. According to McGlone, this trend should continue in the next bull market.
As Velvet Capital explains, according to Cryptonews, the merger also made Ethereum more efficient and scalable. Moving to the proof-of-stake process, Ether is also on the way to becoming deflationary, which would become increasingly clear as the cryptocurrency is used.
#Ethereum becomes deflationary when the consumption rate of the token (from transaction fees) is greater than the staking reward for validators
PoS ETH has only been around for a few months
In the next bull run, ETH could become even more deflationary with more people regularly using the Crypto pic.twitter.com/Edpq0jrZR7
– Velvet.Capital (@Velvet_Capital) December 21, 2022
According to The Daily Hodl, anonymous crypto strategist Smart Contracter, known by his pseudonym, also assumes that now is the time for Ethereum during the next bull market.
yeh bro its still in a multi year uptrend defo want to be in to see it rock btc in the next cycle
– Bluntz (@SmartContracter) December 12, 2022
In the near term, he also sees Ethereum breaking resistance at around $1,300. However, it remains to be seen whether the cryptocurrency will actually succeed in replacing Bitcoin as the biggest digital currency in 2023.