Cryptocurrencies have gained much attention in recent years. Apart from crypto king Bitcoin and Ethereum, several other altcoins are now dominating the world of digital currencies with people investing their hard-earned money in hopes to become millionaires or billionaires. Cryptocurrencies have been experiencing explosive growth and Bitcoin (BTC) remains the most popular, with a market cap of nearly $900 billion.
Crypto trading surged to $139.93 billion, but Bitcoin dipped drastically in the first week of 2022. Ethereum (ETH) too fell on January 7, 2022, by a substantial 7.40%. But, the digital token has been steadily gaining traction and catching up with the top crypto Bitcoin. Ether is the second most popular cryptocurrency after Bitcoin with a current market cap of just over $450 billion. Despite the latest market crash, analysts predict that Ether has the potential to surpass Bitcoin in terms of popularity and price.
In December, the price of Ethereum went up by over 460%, while Bitcoin was up by around 70%. This clearly shows that the decentralized cryptocurrency had been trading well in the last couple of months with whales investing millions and anticipating good returns. In the past few years, many investors had been complaining of the slow speed and high gas fees. The safety of the Ether Network has also been an issue.
So, why is Ethereum a better investment than Bitcoin in 2022?
Ethereum 2.0 layer 2 solution is one of the most significant shifts for Ethereum's network since its inception. And the Ethereum 2.0 protocol upgrade is most likely to be completed in 2022 with the ETH team already working on the second phase of the project. The last phase is also expected to start this year.
Ethereum protocol upgrade will address the current shortcomings of the network. The security, scalability and high transaction fees will be resolved with the launch of Ethereum 2.0.
Moreover, "The future of the Ethereum scaling is bright," said Vitalik Buterin, one of the co-founders of Ethereum during live streaming on YouTube for 'Ethereum US' while speaking about Ethereum cryptocurrency and "ETH Price Prediction OVER $12,000!" More utility is being added to the network, and all these factors will possibly make ETH the fastest-growing cryptocurrency in the near future.
According to CoinMarketCap, Ethereum is currently trading at $3,144.40 per digital coin with a market cap of $374 billion in a days trade.