Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Founder of The DeFi Report: ETH is expected to outperform BTC in the second half of this cycle

Founder of The DeFi Report: ETH is expected to outperform BTC in the second half of this cycle

CointimeCointime2024/06/05 03:28
By:Cointime

Michael Nadeau, founder of The DeFi Report, claimed on social media that ETH is a more reflexive asset than Bitcoin. However, we have not seen this performance in the bull market after the merger, EIP1559, and ETH ETF. Here are five reasons why it is more reflexive, and why I expect ETH to outperform BTC in the second half of this cycle:

1. The operating cost of Ethereum validators is extremely low. Therefore, the "structural sell-off" in this asset is significantly less than BTC.

2. Ethereum "burns" or "buys back" tokens when using the network. About 80% of user transaction fees are burned, and the remaining 20% is used to compensate the network's suppliers.

3. Ethereum has more on-chain activity than Bitcoin, including DeFi, Layer 2, games, NFT, etc. During periods of high usage, the network will consume more and more ETH.

4. Nearly 40% of ETH supply is "soft-locked" on the chain, providing services in DeFi or as on-chain collateral.

5. Token rewards. Bitcoin pays miners about $43.8 million in token rewards every day. Ethereum pays about $7.2 million per day. Compared with Bitcoin, Ethereum has the potential to sell $36.6 million more per day.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!