Why is Ethereum (ETH) more powerful than Bitcoin (BTC) and what should be noted?

To learn more about the coin circle, clickContinuously updating,Recently, the Bitcoin market is facing potential downside risks. Although Bitcoin has achieved significant growth in the past few years, where should we focus during this period before the bull market arrivesBitcoin is currently the leader in the cryptocurrency market, but Ethereum is considered to have greater development potential

To learn more about the coin circle, clickContinuously updating,

Recently, the Bitcoin market is facing potential downside risks. Although Bitcoin has achieved significant growth in the past few years, where should we focus during this period before the bull market arrives

Bitcoin is currently the leader in the cryptocurrency market, but Ethereum is considered to have greater development potential. Here are some reasons why ETH is more effective than BTC.

Firstly, Ethereum has a stronger smart contract platform. Ethereum's blockchain technology allows developers to build and run smart contracts, providing a huge opportunity for the development of decentralized applications (DApps). Compared to this, Bitcoin is mainly a digital currency with relatively limited functionality.

Secondly, the development ecosystem of Ethereum is more diverse. Ethereum has numerous DApps and Decentralized Finance (DeFi) projects, which provide strong support for the development of Ethereum. Compared to this, the ecosystem of Bitcoin is relatively single, mainly focused on digital currency trading and storage.

In addition, Ethereum is working hard to address the expansion issue. The transaction speed and scalability of Bitcoin have always been one of the challenges it faces. Ethereum is currently undergoing upgrades and plans to adopt sharding technology and PoS consensus algorithm to improve its transaction processing speed and scalability.

In the current stage layout, the following points need to be noted:

Firstly, understand and follow the upgrade progress of Ethereum. Ethereum is currently undergoing an upgrade to Eth2.0, which will have a significant impact on its performance and scalability. Keeping a close eye on the progress of these upgrades can help investors better grasp market opportunities.

Secondly, pay attention to the popular DApps and DeFi projects in the Ethereum ecosystem. These projects are not only crucial for the development of Ethereum, but also provide investors with abundant investment opportunities.

Finally, closely monitor the competition between Ethereum and other blockchain platforms. Currently, Ethereum faces competition from other blockchain platforms, such as Polkadot and Cardano. Understanding the technological progress and market performance of these competitors can help investors better formulate investment strategies.

Take a look at the current supply and demand situation on the site, as shown in the following figure

The purchasing power has remained stagnant on the market and has not really come to fruition, and it is still the same until now. I won't be bearish until there is a significant departure of purchasing power, and the US dollar index can already be pre reversed in advance.

The reason for the scarcity of on-site supply is shown in the following figure. At present, the long-term holdings of BTC are 14852960, accounting for 77% of the total circulation. The increase is slow, but it is still on the rise.

77% of BTCs lie flat and do not participate in short-term hand changes. (To add, for glass nodes that have not been traded for more than 155 days, they are defined as long term)

In the past five days, BTC from 26000 to 26700 has shifted towards 27400 to 28100.

It is considered a short-term turnover behavior, but the quantity is not significant.

Also, let's mention the 28830 BTC, which has been covered for over a month, reduced from 1 million to 6354 million. In the previous article, I emphasized that when the chips here are almost diluted, it is the time to officially break through the upward acquisition. Actually, it's almost there now, but even if 28830-29000 arrive here within the next two weeks, there will still be considerable pressure.

Precautions for the layout of the Monkey Market at present:

1. Direction selection:

Try to choose small market value coins with news

Choose platforms with traffic (such as this round of DWF)

Choose the one with unlocking (the project party borrows the opportunity to pull the tray for shipment)

2. Bin management:

There is no doubt that this is not a good time to make money, so I think a 20% position is already very generous.

3. Strict stop loss

Whether it's spot or contract, I think it's necessary to stop loss (excluding fixed investment or hoarding). When liquidity is abundant, I often use 20 points for counterfeiting, but now, the bottom line is 10 points

4. Don't hesitate, don't make a pattern

At this stage, many opportunities are like a wave of current, and the picture door market often appears. Therefore, when you rush, don't hesitate, take a good stop loss to rush, and even if there is a profit, there is a different pattern. 10 to 30 points is a relatively normal range in this cycle. If the trend is not right, simply admit defeat and don't trap yourself with strange ideas.

Can ETH outperform BTC in the next bull market?

Let's take a look at what ETH currently has: DEFI, NFT, GAMEFI, L2, LSD, occasional Meme boom effects, Ethernet itself with ongoing deflation, and underlying returns from Stacking.

Put these conditions on any project, and if you buy, you will feel that it is 10 times higher. So why don't you have confidence in ETH?

The coin circle is an emotional and narrative driven market, an irrational market, which should be recognized by everyone. So what are the explosive points of emotions and narrative? It's a new story and a new wealth effect. What are these two inseparable points? It's innovation! ETH has the largest developer community, the most projects, and the most attention. If there is innovative development, the probability of ETH's success is the highest.

We can see that during the previous LSD concept hype, ETH led a wave of the market. So the current decline in the ETH/BTC exchange rate is just the first sign of positive news for BTC. Hold onto the Tiandi order steadily and wait for waves of positive news after ETH, won't it be enough?

The bull market is not only about BTC and ETH, but also about counterfeit currency, and what does the pull of counterfeit currency rely on? Driven by ETH, as most of it is ETH's ecosystem.

Why is ETH more effective than BTC?

ETH (Ethereum) has some characteristics that make it easier to generate power compared to BTC (Bitcoin).

Firstly, ETH has faster transaction confirmation speed. The block generation time for Ethereum networks is 15 seconds, while for Bitcoin networks it is 10 minutes. This means that Ethereum transactions are confirmed faster, providing a better trading experience and higher transaction throughput.

Secondly, ETH provides smart contract functionality. Smart contracts are automated contracts executed on the blockchain that can implement various functions, such as decentralized applications (DApps), DeFi (decentralized finance), and non homogeneous tokens (NFTs). These features make Ethereum a more flexible and diverse platform that can meet the needs of different users.

In addition, the ETH community has a large number of developers and a more active ecosystem. Ethereum has attracted a large number of developers and projects, with rich tools and resource support. This active community enables Ethereum to quickly launch new features and upgrades, maintaining technological leadership.

Finally, the ETH team actively promotes network upgrades and improvements. Ethereum is currently upgrading to ETH2.0, with plans to introduce higher scalability, lower transaction fees, and better security. This positive attitude towards upgrading enables Ethereum to continuously adapt to market demand and maintain competitiveness.

In summary, compared to BTC, ETH has faster transaction confirmation speed, smart contract function, active community, and positive upgrade attitude, making it easier to leverage and achieve greater success in the blockchain field.