Can Ethereum Upgrades Beat Bitcoin?
Ethereum's Cancun upgrade (Dencun) on May 7th and the upcoming Pectra and Fusaka upgrades have indeed brought revolutionary changes to the crypto world. By introducing sharding technology and optimizing Layer 2 solutions, Ethereum's transaction fees have been reduced by 90%, and TPS (transactions per second) has increased from 30 to 500, theoretically supporting a throughput of 100,000+. This has significantly improved the application experience of DeFi, NFT, etc. For example, the trading volume of the Base chain has surged from 500,000 to 2 million, becoming the most obvious beneficiary of the upgrade. However, reality is harsh - Bitcoin's market value is $1.66 trillion, accounting for 52% of the entire crypto market, while Ethereum is only 10%, the gap is not small.
Why is Bitcoin so stable? Its positioning is "digital gold". The United States regards it as a strategic reserve, and institutional funds are pouring in like crazy, with ETF funds alone holding $78.8 billion. No matter how chaotic the market is, safe-haven funds run to Bitcoin first. For example, when Trump imposed tariffs, all the funds went to hoard Bitcoin. Although Ethereum has strong technology and many applications, the two coins essentially take different paths: Bitcoin is a "piggy bank", and Ethereum is a "universal tool platform", with no direct conflict.
Now, new public chains such as Solana and Sui have emerged, with fast transactions and low fees, grabbing a lot of the market. Solana's DeFi lock-up volume has increased by 26%, and Sui has attracted a bunch of chain games with new technologies. This has instead accelerated Ethereum's upgrade, with everyone competing on technology. However, cross-chain security problems have also arisen. For example, the SUI public chain was attacked and lost 260 million, reminding us not to blindly chase new coins.
In summary: No matter how much Ethereum is upgraded, it cannot shake Bitcoin's "gold" status in the short term. The two coins will likely play their own games, one for saving money and the other for applications. The rise of new public chains has transformed the crypto market from "one dominant player" to "multi-chain melee", and cross-chain technology and security will be key in the future. Ordinary investors should keep an eye on Ethereum Layer 2 and Solana, these potential chains. Don't bet all your money on one, but invest in both mainstream coins and potential coins, that's the right way!
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