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<p>The post <a href="https://coinpedia.org/news/ethereum-set-to-outperform-bitcoin-in-the-next-bull-market-eyes-for-10k/" rel="noopener noreferrer nofollow">Ethereum Set to Outperform Bitcoin in the Next Bull Market, Eyes For $10k</a> appeared first on <a href="https://coinpedia.org" rel="noopener noreferrer nofollow">Coinpedia Fintech News</a></p>
<p>After the <a href="https://coinpedia.org/news/big-win-for-ethereum-as-the-sec-approved-spot-ethereum-etfs/" rel="noopener noreferrer nofollow">approval of the Ethereum ETF</a> which directly holds ether (ETH) is soon going live in the U.S. Meanwhile, crypto analytics firm K33 Research report suggests that ETH ETF could attract $4 billion in inflows within the first five months.</p>
<p>K33 Research <a href="https://k33.com/research/articles/1-million-eth-to-be-absorbed-by-the-etfs" rel="noopener noreferrer nofollow">made their prediction</a> by looking at how much money is managed in existing ETH-based exchange-traded products worldwide, comparing them with similar products for bitcoin (BTC).&nbsp;They also checked how many futures contracts were being traded on the Chicago Mercantile Exchange (CME), which is a big deal for big investors.</p>
<h2 class="wp-block-heading" id="h-ethereum-to-outperform-bitcoin">Ethereum to Outperform Bitcoin</h2>
<p>Adding to the optimism, a crypto analyst recently tweeted about why Ethereum (ETH) might outperform Bitcoin (BTC) in the second half of this market cycle. They pointed out five main reasons why ETH might be a better investment than BTC. This is especially true after recent changes like the merge, EIP-1559, and the introduction of ETH ETFs.</p>
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   <p lang="en" dir="ltr">ETH is a more reflexive asset than Bitcoin. But we haven't seen this expressed just yet in a bull market post-merge, post-EIP1559, and post-ETH ETF. <br><br>5 reasons why it's more reflexive, and why I expect to see ETH outperform BTC in the latter half of this cycle:<br><br>1. Ethereum's… <a href="https://t.co/EORGo04LSt" rel="noopener noreferrer nofollow">pic.twitter.com/EORGo04LSt</a></p>— Michael Nadeau (@JustDeauIt) <a href="https://twitter.com/JustDeauIt/status/1798040326290153837?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 4, 2024</a>
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<h2 class="wp-block-heading" id="h-here-s-5-solid-reasons">Here’s 5 Solid Reasons</h2>
<p><strong>Lower Operating Costs for Validators – </strong>Ethereum’s validators have low operating costs, so they don’t need to sell as much ETH. Bitcoin miners, on the other hand, often sell BTC to cover their high costs.</p>
<p><strong>Token Incentives</strong> – Bitcoin pays about $43.8 million daily to miners, creating high selling pressure. In contrast, Ethereum pays around $7.2 million daily, resulting in $36.6 million less in potential selling activity.</p>
<p><strong>Token Burn Mechanism – </strong>With the implementation of EIP-1559, about 80% of user transaction fees are burned reducing overall ETH’s supply, while the remaining 20% helps keep the network running. This is <a href="https://coinpedia.org/news/bitcoin-poised-for-qucik-rally-as-long-term-holders-began-to-buy-btc/" rel="noopener noreferrer nofollow">different from Bitcoin</a>, which has a fixed supply.</p>
<p><strong>Locked Supply – </strong>Nearly 40% of ETH is “soft locked” in DeFi services or as collateral, reducing its circulating supply. This helps stabilize the price and can lead to rise in price.</p>
<p><strong>Higher Onchain Activity – </strong>Ethereum supports various activities like DeFi, layer 2 solutions, gaming, and NFTs. When network usage is high, more ETH is burned, making it scarcer and potentially increasing its value.</p>
<h2 class="wp-block-heading" id="h-ethereum-eyes-for-10k"><strong>Ethereum Eyes For $10K</strong></h2>
<p>ETH Bullish Following the approval of a spot ETH ETF, Ethereum has broken out of a multi-month falling wedge pattern. Meanwhile, crypto analyst Jelle suggests that if ETH surpasses $4,000, it could rally to $10,000.</p>
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   <p lang="en" dir="ltr"><a href="https://twitter.com/search?q=%24ETH&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$ETH</a> had spot ETFs approved, broke out of the falling wedge, reclaimed key support &amp; now consolidates above that level.<br><br>Seeing lots of people overcomplicate things here. So long as prices hold above this area, theres no reason to flip bearish.<br><br>Hold on tight and enjoy the ride. <a href="https://t.co/Gvn0MhnKsV" rel="noopener noreferrer nofollow">pic.twitter.com/Gvn0MhnKsV</a></p>— Jelle (@CryptoJelleNL) <a href="https://twitter.com/CryptoJelleNL/status/1797889867365695547?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">June 4, 2024</a>
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<p>As of now, ETH successfully regained the <a href="https://markets.coinpedia.org/ethereum/" rel="noopener noreferrer nofollow">$3,810 price</a> range and briefly tested the $3,900 price range, with a market cap of $457 billion.&nbsp;</p>

Ethereum Set to Outperform Bitcoin in the Next Bull Market, Eyes For $10k

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