Ethereum outperforms Bitcoin in 2021, which has become one of the most prosperous in the cryptocurrency market’s history and is already performing better in 2022.
Ethereum Outperforms Bitcoin by a Wide Margin
The year 2021 has become one of the most prosperous in the cryptocurrency market’s history. The year ended with a 58 percent gain. Smaller coins, like Ethereum, on the other hand, performed even better.
According to its quarterly returns, Ether outpaced Bitcoin in every quarter of 2021, including amid the global cryptocurrency market sell-off in the second quarter.
Ethereum had its most successful quarter in the first quarter of the year, with a 102 percent price increase from January to April.
The majority of the market is unsurprised that Ethereum has performed better in general.
Several factors have played in favor of the largest cryptocurrencies over the course of the year, with the NFT mania skyrocketing gas fees, the DeFi sector collecting billions of dollars in user funds, and the network receiving continual modifications.
The EIP-1559 upgrade should be mentioned separately because the newly introduced fee structure has completely modified the asset’s structure, making Ethereum deflationary in the future.
Shortly after, one of the first deflationary blocks occurred on the network, bringing less Ethereum to the network than was burned.
The course that Bitcoin will take in the coming year
With the price action and volatility from 2021, Bitcoin, the largest cryptocurrency on the market, has entered the year 2022. The asset is currently trading in the $51,000 to $46,000 band with a profit of about 1%.
Bitcoin’s extended consolidation, according to various cryptocurrency analysts, is nearing an end as its volatility falls to severe lows.
