Ethereum to Overtake Bitcoin by Market Cap? 1Confirmation Thinks So

  • 1Confirmation predicts Ethereum will surpass Bitcoin’s market cap by 2029.
  • The firm also argued the Prediction markets could see 100x growth, driven by political events.
  • DeFi and NFTs are poised for resurgence through SocialFi and app chains.

Cryptocurrency is set to see a major shift in the next five years, with Ethereum projected to surpass Bitcoin’s market cap by 2029, according to 1Confirmation, a leading venture capital firm. This bold prediction comes as recent approvals of Bitcoin and Ethereum spot ETFs signal growing Wall Street acceptance.

According to a Q2 2024 letter LP shared on X by Nick Tomaino, Bitcoin ETFs currently boast over $788 billion in assets under management, while Ethereum ETFs hold $88 billion. Corporate contributions to pro-crypto political campaigns have also surged to $119 million, despite pushback from the Biden administration.

1Confirmation predicts that Ethereum’s market cap, currently around $321 billion, will surpass Bitcoin’s $1.2 trillion by 2029. The firm argues that Ethereum’s utility in decentralized applications and finance gives it a major advantage over Bitcoin’s “digital gold” narrative. Ethereum’s role in building a decentralized internet has also attracted notable attention from Wall Street.

However, 1Confirmation notes that recent consumer trends in crypto, such as meme coins and NFTs, have failed to bring significant innovation, relying instead on recycled ideas. The firm emphasizes the need for new, authentic products that will engage the audience and drive the next wave of adoption.

Prediction markets are another area 1Confirmation sees taking off in 2024, especially around the U.S. presidential election and other major global events. These markets have grown significantly in value, reaching over $1.1 billion this year, and could see 100x growth in the coming years. 

Stablecoins on Ethereum play a key role in enabling these markets, which are gaining traction where official narratives and public opinion diverge.

In addition to prediction markets, 1Confirmation anticipates a resurgence in DeFi and NFTs because of the development in SocialFi and app chains. 

The firm believes that new non-custodial products will encourage users to engage with decentralized finance without the need for intermediaries. Advances in L2 and L3 app chains will further enhance scalability and user experience, allowing DeFi to continue to grow.

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Source: https://coinedition.com/ethereums-market-cap-to-eclipse-bitcoins-by-2029/