For a long time, Bitcoin has been the most widely used cryptocurrency.
Bitcoin has been the leader in the cryptocurrency market for many years, but now its position as the most important crypto is at risk. Last week was the first time that Ethereum outperformed Bitcoin in terms of total transactions.
Also, the crypto saw more active addresses per day which is basically the active participation of Ether. This data suggests that Ethereum is gaining more attention from investors and may be able close the Bitcoin gap.
Santiment, a cryptocurrency analytics company, confirmed the transaction data. It tweeted that Ether, the official currency of Ethereum and the second-oldest major token still around, had created history and surpassed Bitcoin for the first day in active addresses.
Bitcoin is seen as an alternative to Gold, while Ethereum is viewed as a supercomputer upon which other cryptos can be built. The creators of Ethereum have confirmed that they are working on an energy-efficient successor to the crypto, which could launch later in the year.
This data is more interesting because while Ether has seen an increase in active addresses, Bitcoin’s number of active addresses is declining. This indicates that Bitcoin investors are now looking at long-term options for other cryptocurrencies.
One reason could be China’s crackdown against Bitcoin mining or environmental concerns raised about the crypto by multiple people including Elon Musk, who confirmed that Tesla would not accept Bitcoin payments until his car-making company is more efficient.
Tesla and Musk have not yet sold their Bitcoin holdings.
Crypto enthusiasts believe Bitcoin will rebound from this dip just like it did in the past. It has been around almost a decade and has stood the test. This is however the first time it has been challenged by another cryptocurrency. It will be interesting to see how Ethereum can maintain the momentum gained in the last few days.