
“Ethereum is emerging as the institutional favorite, nearly surpassing Bitcoin in ETF inflows and cementing its role as crypto’s yield-bearing backbone,” Binance Research reports. Although Bitcoin has been reigning supreme in the crypto space since its inception, things could change with the growing popularity of other tokens like Ethereum.
According to CoinLaw, Ethereum processed over $172 billion in daily transactions in Q1 2025, marking the fourth straight quarter it has moved more value than Bitcoin. And just recently, at the beginning of Q3, Yahoo Finance reported that Ethereum’s daily transactions hit $24.45 million, meaning more people are actually joining the system at an unprecedented level.
Well, when you check the Bitcoin price USD, the value is multiple times higher than Ethereum. Of course, Bitcoin’s scarcity and global recognition give it a mystique that no other coin has yet fully matched. But in the always unpredictable crypto world, no throne is entirely safe. And especially now that Ethereum has transformed blockchain from a simple peer-to-peer transfer system to a platform for decentralized applications, it could soon become crypto’s king.
Just recently, Business Research Insights valued the decentralized application (Dapp) market at $30 billion, expecting it to hit $142.2 billion by 2033. That’s a more than 18% CAGR, highlighting how Ethereum-based technologies are set to dominate the future. So, does this mean Ethereum is set to dethrone Bitcoin?
The Appeal of DeFi Infrastructure
A financial system built on blockchain, DeFi, or decentralized finance allows individuals to access financial services like lending and borrowing without relying on traditional intermediaries such as banks or brokers. DeFi activities have been increasing, with Binance reporting a 72% in 2025 alone.
Remember, Ethereum holds the largest share of this market. Binance recently noted an increase in its share, hitting close to 60%, while other networks, except for Solana, witnessed a decline. At a time when no one wants payments delayed, DeFi offers a great alternative to improve transaction speeds and online security.
Its decentralized infrastructure eliminates the need for intermediaries who often lengthen transaction processes. This improves customer experience, as shoppers won’t have to wait ages to receive their funds. About 70% of customers want transactions processed in less than two seconds. Delaying the process could be problematic and reduce conversion rates by up to 20%. Such losses are unbearable, explaining why many sectors are welcoming DeFi technology.
When it comes to online security, DeFi still outpaces many traditional ecosystems. It uses decentralization to reduce the likelihood of single-point failure and immutability to prevent data alterations upon validation. As businesses turn to it to take advantage of these benefits, Ethereum’s demand increases, leading to price jumps.
Technology Gives Ethereum The Edge
You may be surprised to learn that bitcoin mining uses as much electricity as Poland. Looking at the statistics, the Cambridge Centre for Alternative Finance claims that it can use between 155 TWh and 172 TWh per year. At the heart of this energy demand is Bitcoin’s Proof of Work system, where miners race to crack intricate mathematical puzzles to verify transactions and secure the network. While this teamwork helps maintain security, it also results in a significant increase in energy consumption.
Besides unsustainable energy consumption, crypto mining also has a large water footprint. According to Polytechnique Insights, companies used about 1.5 billion litres of water in 2021 to cool mining servers and indirectly to produce electricity. Good enough, Ethereum’s Proof-of-Stake (PoS), can enable companies to overcome this sustainability challenge. In PoS, not everyone validates transactions. Just a few participants are often chosen based on the amount of cryptocurrency they hold and how much they are willing to ‘stake’ as collateral.
And by reducing the number of complex puzzles to solve, PoS networks eliminate the need for massive amounts of specialized hardware that PoW systems require. This can reduce energy consumption by 99.95%, which could push Ethereum’s popularity among sustainability-conscious populations.
What About Bitcoin’s Scarcity?
One of this token’s greatest strengths is its scarcity. When it was launched, its code set a strict limit, allowing the creation of a maximum of 21 coins. As of now, over 19 million have been mined, highlighting that the currency’s supply is getting smaller. This scarcity helps to protect Bitcoin from inflation, which is why many experts refer to it as ‘digital gold.’
If you’ve been keen, you may have noticed that previous halving events resulted in sharp price increases for Bitcoin. In 2012, the price increased by almost 80 times. In 2016 and 2020, the prices rose by 300% and 600%, respectively, explaining why experts believe Bitcoin will continue to dominate the industry, even in the coming years. Although miners often receive fewer rewards at each halving, the coin’s increasing scarcity might continue to make it appealing to future investors.
Unlike Bitcoin, Ethereum’s supply is unlimited. However, since the introduction of the EIP-1559 upgrade in 2021, the network has been able to control inflation by burning a portion of every transaction fee, reducing supply over time. In fact, in early 2023, Ethereum became deflationary, meaning more ETH was burned than created.
Imagine pairing that with Ethereum’s decentralized applications. You will have a dynamic economic model that beats Bitcoin in the long run. It’s perhaps why Binance noticed Ethereum’s market share rose to 14.2% in September, while Bitcoin dropped. But again, Bitcoin still carries the day when it comes to storing value. Given these unique benefits, the crypto world might not just have one king. Bitcoin could still remain the fortress of value, while Ethereum could be the engine driving innovation.