Like tech companies, competition between cryptocurrencies has been escalating for years. The debate between the communities supporting Bitcoin and Ethereum, the two largest digital assets by market capitalization, is endless.
Some of the crypto lovers consider Ethereum superior to Bitcoin as it has historically generated more returns. However, the latest data revealed that this situation may disappear in the medium term.
Over time, the increase in the correlation coefficient between BTC and ETH has almost equalized the rates of return. According to the market data of the last 5 years, the profit gap between Ethereum and Bitcoin investors has been zeroed.
The profit rate of investors who bought Bitcoin and Ethereum in April 2018 was about 300%.
BTC Outperforms In The Bear Market
Bob Ras, founder of Sologenic, which produces tokenized securities, stressed that conditions have changed after the bull market ended in 2021.
Ras noted that while areas like NFT and DeFi are popular in the bull market, Ethereum is a major force behind it. ETH has therefore outperformed BTC on the upswings.
"Bitcoin, the leading cryptocurrency, acts as a "store of value" due to its limited supply. Therefore, it suffers less in bear markets."
