Ethereum, the second-largest cryptocurrency by market cap, has long been Bitcoin’s primary rival in the crypto space. While BTC still dominates, many wonder if ETH could potentially catch up to Bitcoin’s total market capitalization. Let’s explore this possibility.

If Ethereum Matched Bitcoin’s Market Cap

As of September 29th, ETH trades at $2,643 with a market cap of $318.2 billion. This is significantly lower than Bitcoin’s $1.298 trillion market cap. However, Ethereum’s transition to Proof-of-Stake, growing institutional adoption, and increasing ETH ETF inflows could accelerate its growth.

If Ethereum were to reach Bitcoin’s current $1.298 trillion market cap, given ETH’s circulating supply of 120,366,230, the price per ETH would skyrocket to approximately $10,785. This represents a potential 309% increase from the current price.

Vitalik Buterin’s Vision for Ethereum’s Future

Ethereum co-founder Vitalik Buterin recently outlined key principles to guide the network’s growth. These include emphasizing open-source development, maintaining open standards, and prioritizing decentralization and security. Buterin also stressed the importance of collaboration within the Ethereum ecosystem and the broader blockchain community.

“My ideal goal here is to see more entities like L2beat emerging to track how well individual projects are meeting the above criteria,” Buterin stated in a blog post.

These developments could further boost Ethereum’s appeal and its potential to challenge Bitcoin’s market dominance.

ETH Price Approaching Major Support

Ethereum’s price has seen a significant correction since late May 2024, dropping 33% from $3,974 to $2,649. If selling pressure continues, ETH could potentially fall another 18.7% before retesting a major support trendline established on June 22. Historically, bounces from this support level have led to substantial price increases, making it a key area to watch for potential accumulation.

Conclusion

Ethereum’s expanding role in DeFi, NFTs, and increasing institutional interest give it the potential to eventually match Bitcoin’s market cap. If achieved, this would push ETH’s price to around $10,785. However, investors should remain cautious and conduct thorough research before making any investment decisions.

Frequently Asked Questions (FAQs)

1. What would Ethereum’s price be if it matched Bitcoin’s market cap?
If Ethereum matched Bitcoin’s market cap of $1.298 trillion, the price of ETH would rise to approximately $10,785.

2. How close is Ethereum to testing its major support level?
If selling pressure continues, Ethereum is 18.7% away from retesting its major support trendline established on June 22.

3. What factors could drive Ethereum’s price growth?
Ethereum’s price growth could be driven by factors such as the transition to Proof-of-Stake, increased institutional adoption, inflows into ETH ETFs, and the overall expansion of its utility in DeFi and NFTs.