This is what this executive has to say on the potential of an ETH-BTC swap.

 This is what this executive has to say on the potential of an ETH-BTC swap.

Ether, the world's second most valued cryptocurrency, has been making headlines for a variety of reasons, including ETH 2.o advancements, adoptions, and so on. Such significant milestones enabled the network in achieving features that even outperformed Bitcoin. Some even claim that Ethereum is years ahead of Bitcoin in all aspects except price and fame.

Now, no one knows if it will be able to beat BTC anytime soon. Is ETH, nevertheless, undervalued in comparison to its competitor? This executive certainly thinks so.

 

Flippening on the horizon?

Jurrien Timmer, Fidelity Investments' Director of Global Macro, recently took to Twitter to share his perspective on the subject. He compared the network expansion of Bitcoin and Ethereum, and he backed up his claims with graphs.

Consider this: both networks are "growing steadily," but Ethereum, according to Timmer, is growing quicker. A metric war between 'Scale vs Scarcity.' The same story is told in the graph below. Given its diversification into NFTs, DeFi, and other applications, demand for ETH has clearly increased over time.

 

Source: Twitter

Various reports have confirmed the similar increase when compared to BTC. For example, four Australian researchers recently published a study discussing how the Ethereum Improvement Proposal (EIP) 1559 upgrade makes ETH a potentially greater store of value than BTC. One of the causes for the increased demand for ETH among investors.

Valuation

Look at the graph below.

Source: Twitter

Despite ETH lacking in terms of valuation i.e. (market cap / network ratio), the executive saw this as a buying opportunity. He opined:

“Comparing BTC’s valuation to ETH we see a big discount for ETH, presumably because investors reward BTC for its superior scarcity dynamics.”

Last year on this day, ETH was valued $654. Fast forwards to today, and ETH stands barely shy of the $4k level, with only a 0.5 percent gain in the last 24 hours. ETH has received support from a number of well-known investors. Cathie Wood, the CIO and CEO of Ark Investment Management, just joined the bandwagon.

Despite the violence in the crypto world, strong hands continue to HODL the flagship token. Santiment claims that

 

These HODLers indeed seem to be acquiring ETH at a discount. Now, whether ETH will continue to catch up to BTC will be an interesting thing to watch in 2022.

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