Investing.com - The world's second most popular cryptocurrency, Ethereum, is gradually diverting attention from Bitcoin, especially after it hit a record of more than $ 4,000 last Monday. Overall, it is up more than 450% this year.

 Ethereum is undergoing an ambitious "reset", otherwise known as "Ethereum 2.0".  According to CNBC, this will lead to a shift in favor of those investors who already have some Ethereum to process new transactions, which will support the entire network.  Then it will be able to operate on a larger scale, process many more transactions and at a higher speed, thereby supporting applications with millions of users.  But on the other hand, this can also lead to a short-term increase in prices for this digital currency.

 Token holders have increasingly started to keep Ethereum as a safety net - for the period of "blocking", if they want to become participants and confirm their transactions in the new network.  In theory, this could limit the available supply of Ethereum.

 However, there are still skeptics who are not convinced by the rise of digital currencies like Bitcoin and Ethereum.  The latest rally reminded some investors of the 2017 crypto bubble, when Bitcoin surged to $ 20K and dropped to $ 3122 a year later.

 According to the "bears", cryptocurrencies are waiting for the next bubble, which chooses the moment to burst.  But the bulls are convinced that this time everything is different, and institutional and serious investors have begun to show more and more interest in cryptocurrencies.

 In fact, while Ethereum still lags well behind Bitcoin ($ 1 trillion) in terms of market value, some experts predict that the second-highest cryptocurrency will soon overthrow it and become the largest in the world itself.  So far, its share is 48% of the total market capitalization, according to CoinGecko.

 “As bitcoin loses its historical dominance in the marketplace, the blockchain-based currency most used by the rest of the altcoins will begin to rally, showing signs of the disconnect that has long been predicted by Ethereum bulls,” said Tim Frost, CEO  Yield App

С Уважением Любовь Султанова.