Why is Ethereum the only altcoin to challenge Bitcoin’s dominance? 

In the ever-changing and continuously-expanding crypto realm, there’s always been a stark contrast between Bitcoin and other digital assets. That’s not just because Bitcoin is the initiator of cryptocurrencies and, therefore, the most recognized asset of its class – a fact that no one can change – but also because it has managed to stay in the lead for over fifteen years and counting. Perched on its throne since the very beginning, the original crypto continues to reign supreme and impose its dominance on the crypto space – unprecedented, unparalleled, and untouchable. 

The only other digital currency that has ever dared steal some of its shine is Ethereum. A leader in its own right, Ethereum stands out as the most popular altcoin and a beacon of innovation in the crypto industry. According to recent data, it boasts the second-largest market cap after Bitcoin, with a trading price of $3,196 at the time of writing. 

The dynamic duo of the crypto market  

Although the ETH coin price is still eons away from Bitcoin’s performance and value and doesn’t really represent a threat to its supremacy, the two assets often share the spotlight and are analyzed in tandem. Analysts have a habit of drawing parallels and comparing Bitcoin to Ethereum every time they get the occasion. Whenever something major happens in the crypto market that can impact Bitcoin in one way or another, the discussion inevitably turns to Ethereum. 

The top altcoin has continuously been following in Bitcoin’s footsteps. The most recent example in this respect is the launch of spot crypto ETFs. Bitcoin-based spot exchange-traded funds were approved by the U.S. Securities and Exchange Commission in January. Almost six months after their debut, spot ETFs tracking the live price of Ethereum also received the green light from the regulator and started trading. 

While Bitcoin and Ethereum continue to move in relative sync, the rest of the cryptos in the market live in their shadow. So, the question that naturally arises is why is Ethereum the only digital asset that has managed to get close to the crypto leader. To decipher Ethereum’s unwavering appeal, we need to take a closer look at its core characteristics.

More than just a crypto  

Most people refer to the chief altcoin using the terms Ether and Ethereum interchangeably. This is common even among versed crypto traders and investors who know all too well that these names designate two different things. For the sake of consistency, we’re going to do the same, but not before highlighting the difference.  

Ethereum is a blockchain platform with smart contract functionality, whereas Ether (ETH) is the platform’s native cryptocurrency. Ether can be used to pay fees on the Ethereum network by those who want to use its resources and capabilities; it can also be traded on exchange platforms just like any other digital asset and used as an investment venue. 

So, unlike Bitcoin, whose only purpose is to serve as an alternative to fiat money, Ethereum is not just a technology that underpins a new form of money but a complex mechanism that can be freely accessed and used by anyone with the right skills to run smart contracts or to create and launch decentralized applications (dApps). 

Smart contracts act like computer programs that allow two or more parties to complete a transaction of any type by automatically executing the terms stipulated in the agreement when certain predetermined conditions are met. The great thing about smart contracts is that they are immutable and, therefore, cannot be altered. While this limits their flexibility, it also ensures reliability and enhanced security by eliminating the risk of manipulation. 

The smart contract functionality also aids in the deployment of dApps in many different fields, such as finance, gaming, politics, and so on. Unlike regular apps, which are hosted on centralized servers, dApps are underpinned by blockchain technology, so they can operate without being controlled by a central authority. Ethereum is the go-to platform for the development of dApps, which means that most of the dApps in existence today are powered by the blockchain. 

The groundbreaking features that Ethereum possesses have earned it the moniker of a global supercomputer and have led to the development of an entire ecosystem around its blockchain. The multitude of real-world cases that other crypto projects lack have given Ethereum a major competitive advantage and have fueled its growth throughout the years. As Ethereum’s native token, Ether draws on the popularity and prowess of its mother blockchain, being just as coveted and influential. 

A veteran of the crypto world 

Beyond its many intrinsic qualities, the mere fact that Ethereum has been in the market for much longer than many of the altcoins stands as proof of its strength and resilience. Ethereum was launched in July 2015 and has weathered many bear markets and critical moments in the evolution of digital currencies since then. While other projects emerged and faded away around it, Ethereum kept going and improving both in terms of performance and value. 

Throughout its journey, the blockchain has experienced numerous updates and upgrades that have helped it maintain its relevancy and attractiveness among developers, traders, and investors. In an industry where volatility and instability are the order of the day, Ethereum’s proven track record is one of its strongest selling points. 

So, at first glance, Ethereum might seem like any other altcoin, but when you dig deeper and look beyond the surface, you come to realize it’s anything but. Ethereum has a lot of traits that highlight its uniqueness and bolster its legitimacy and standing in the market. This explains why, out of all the altcoins that emerged in Bitcoin’s wake, Ethereum was the only one that was able to keep up with the pioneering cryptocurrency. If fortune favors Ethereum, maybe one day it will become a much more serious contender to Bitcoin’s throne.