Ethereum Could Soon Take Half of Bitcoin's Market Cap, Tech Analyst Claims

Francisco Memoria
  • A tech analyst has recently argued ETH's market cap will surpass that of BTC in the next five years.
  • This as he claims it offers much more than the flagship cryptocurrency.

Ian McLeod, a tech analyst working for Thomas Crown Art, an art agency that uses the Ethereum blockchain to protect the industry it’s in, has recently argued ETH could take half of bitcoin’s market cap within five years.

Speaking to MarketWatch, McLeod argued the second-largest cryptocurrency by market cap has recently found a bottom after its price plummeted, and that its price will reflect the growth of the utility of its blockchain.

He was quoted as saying:

Not only do we think it will rebound considerably before the end of 2018, I believe that over the longer time it will significantly dent bitcoin’s dominance. In fact, I think we can expect bitcoin to lose 50 percent of its cryptocurrency market share to ethereum, its nearest rival, within five years.

Bitcoin, the flagship cryptocurrency, is currently trading at $6,300 and its market cap is of $110 billion, over five times that of ETH, which is currently of $21.3 billion. Taking half of bitcoin’s market share would mean ETH could become the number one cryptocurrency – an event market watchers dubbed “the flippening.”

Ethereum’s ether is, at press time, trading at $209.7 after falling nearly 1% in the last 24-hour period. In the last 30 days, the cryptocurrency plummeted from about $300 to a low of $170, before recovering, according to CryptoCompare data.

hour_CryptoCompare_Index_ETH_USD_241_31537367922612.png

Ethereum has notably been able to recover at a time in which the number of people betting against it keeps rising. McLeod, citing the utility of ETH for his firm, claimed the cryptocurrency offers much more than BTC, as it allowed Thomas Crown Art to “create a system to use artworks as a literal store of value.”

Per his words, it also solved authenticity and provenance issues, as all of the firm’s works are “logged on the Ethereum blockchain with ‘unique smART contract.” Unless BTC faces its scalability issues, he said, the next five years will see ETH surge.

As MarketWatch points out, ETH is no stranger to scalability issues itself. While its network can process more transactions per second than that of bitcoin, the difference can seem minimal to users dealing with high fees and slow processing times.

The Ethereum network is set to scale thanks to major updates, which include Sharding, Plasma, and its long-awaited transition to a Proof-of-Stake (PoS) consensus algorithm. Defending the cryptocurrency and its network, McLeod added that ETH is “already light years ahead of bitcoin in everything but price.”

Notably rating agency Weiss Ratings tweeted out in agreement.

ETH-based decentralized exchanges (DEXs) are also set to scale. As CryptoGlobe covered Ethfinex has recently launched ‘ETHfinex Trustless’, a non-custodial exchange in which users won’t have to sign up to trade in. The exchange is reportedly sharing Bitfinex’s order books.

SNARKs on SNARKs, ‘A Simple Version of Zcash’ to Speed Up Ethereum

Colin Muller

Ethereum (ETH) founder Vitalik Buterin has recently revealed during a talk his concept of “ZK ZK Rollups,” a new method of using zero-knowledge proofs to significantly increase transaction and computational power on the Ethereum network.

This method functions by splitting the two distinct tasks of data storage and “state execution engine,” by “moving the computation [of validating transactions] off-chain.”

Vitalik on ZK ZK Rollups(source: Youtube.com)

Vitalik’s ZK ZK Rollup concept represents the next iteration of potential zk-SNARKs usage on Ethereum, which the founder has been talking about for months. ZK ZK Rollup builds on the previous “ZK Rollup” concept (just one “ZK”), and Vitalik commented during the talk that his method “[would be] like, basically a simple version of Zcash” operating within a future version of Ethereum.

Here what we're doing is, we're not requiring the chain to verify a SNARK for every transaction. We're not even putting the SNARK on-chain. Instead we're putting one single SNARK - where one single SNARK verifies that for every transaction that gets included, there is a SNARK attached.

Vitalik Buterin

zk-SNARKs were originally developed for the Zcash privacy coin, and are a way cryptographically prove the posession of some data or information, without revealing or showing the data itself.

Let’s Talk Numbers

Within Ethereum’s current archetecture, Vitalik stated that Rollups could increase transactions-per-second by a factor of the 30.

While this is already an impressive figure, the real magic could come when Rollup methods are applied to Ethereum 2.0 architecture - whenever it arrives.

When applied to a future, sharding-capable version of Ethereum, Vitalik stated that “about 27,000 privacy transactions a second” would be possible using ZK ZK Rollups; and he added that “if we don’t care about privacy, we can increase that by probably another factor of ten.”

CryptoGlobe reported today on the Ethereum community’s decision to move proof-of-work mining on the network to the ProgPoW, or Progressive Proof-of-Work hashing algorithm, in an attempt to keep Application-Specific Integrated-Circuit (ASIC) mining off the network. The use of ProgPoW has been a contentious issue in the community for months, with critics charging that it tries to solve “non-existent problems.”