Over the past year, highlighting the relative out performance of ETH versus BTC over that period, the market capitalization of Ether (ETH) has increased at a much faster rate than Bitcoin’s (BTC)
Pantera Capital charted Ether’s growth trajectory. “The ratio of ethereum’s market cap to Bitcoin’s market cap has doubled in the last year,” the investment manager and which they provided in their latest Blockchain Letter. It is important to note that Pantera capital is a cryptocurrency investment manager.
In its latest Blockchain Letter, cryptocurrency investment manager Pantera Capital charted Ether’s growth trajectory. “The ratio of ethereum’s market cap to Bitcoin’s market cap has doubled in the last year,” the investment manager said,
They stated that:
“We think this is the beginning of the market re-rating Ethereum for EIP 1559 and Proof of Stake. These two changes will lead to ethereum being a deflationary asset where each block negative ethereum are issued. This means ETH will be a more deflationary asset than bitcoin.”
The combination of growing DeFi use cases and rapid adoption suggests Ether’s market share will continue to grow relative to Bitcoin’s, Pantera argued.
“We think this is just the beginning,” Pantera CEO Dan Morehead tweeted on Thursday in reference to Ether’s potential versus Bitcoin.
Ether’s value has shot up 1,750% over the past 12 months, even while factoring the latest market turmoil tied to Elon Musk’s decision to stop accepting Bitcoin payments for Tesla automobiles.