While Bitcoin continues to remain the “blue chip” of cryptocurrencies, 2020 has seen Ethereum trail in second place, as well as the rise in popularity of altcoins built on Ethereum, said Hong Fang, CEO of OKCoin.
“2020, in addition to Bitcoin which takes the dominance in the market, about 73% of the volume, Ethereum definitely comes next. Ethereum is basically a protocol that allows smart contracts, so that a lot of applications can be built on top of it,” Fang said.
Some analysts have speculated that Ethereum’s superior technology will one day lead it to surpass Bitcoin in market value, Fang said that this analysis does not tell the complete story.
“I would disagree, but not [with] the fact that Ethereum has inferior technology than Bitcoin. I think those two are built for very different use cases. They are also in very different stages of development in their life cycle. Bitcoin was built as a store of value,” Fang said. “Ethereum, on the other hand, is built to allow smart contracts, in that people can actually build apps on top of it to really build internet use cases in the crypto world.”