Ethereum (CRYPTO: ETH) bulls are now challenging Bitcoin's (CRYPTO: BTC) dominance in the crypto space.
What Happened: According to a Bloomberg report, "Ethereum is challenging Bitcoin’s dominance in the crypto world" as its one-month forward contract is trading at an 8.37% premium when compared to the spot price. Bitcoin's one-month forward futures contracts have a premium of just 6.58%.
This indicates that Ether is enjoying increasing institutional adoption and a higher level of bullishness when compared to Bitcoin. Open interest in Ethereum contracts versus Bitcoin has increased from under 0.1 in April to nearly 0.3 on the back of the mentioned institutional attention.
While the Ethereum network being expected to burn over $5 billion in one year is notable on its own, the real benefits of the upgrade will be seen when the coin is estimated to become deflationary after a future network upgrade believed to take place next year.
Deflationary perspectives spurred bulls and invited institutional attention to Ether.
This sentiment even resulted in discussions about Ethereum overtaking Bitcoin's market cap in the future, but — as we explain in a recent analysis— much more than just their inflation should be considered when comparing the two coins.
Despite all of that, Ether apparently already is a more popular investment choice than Bitcoin among Singaporean crypto investors.
Price Action: Ethereum was trading at 47,939, up 1.60% over the past 24 hours, while Bitcoin gained 3.36% and was trading at $3,232.
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