Many people see Bitcoin as the potential future foundation of the financial system, but not everyone agrees. There are more possibilities within the crypto market and according to some analysts, Ethereum is the inevitable future foundation of the financial world.

Barry Rahma from BeInCrypto is one such person and he explains why he thinks Ethereum is more important than Bitcoin.

‘Ethereum is about to change everything’

The Ethereum price has risen enormously since the beginning of 2024 and, according to Barry Rahma, this has, among other things, led to the revival of the NFT industry. “This rise in Ethereum’s prominence demonstrates its increasing utility and adoption across industries, from digital art to DeFi,” said Barry Rahma.

Last week, the Dencun upgrade was added, which makes the use of layer-2 blockchains a lot cheaper; thanks to the introduction “blobs” or “proto-dankhardening”. This upgrade frees up space on layer-2 networks, reducing transaction costs by up to 90 percent on some platforms.

On platforms such as Arbitrum, Optimism, Base and zkSync Era, transaction costs have fallen by 60 to 90 percent. According to Rahma, this strengthens Ethereum’s position as the absolute market leader in the field of smart contracts.

“Smart contracts, a crucial part of the Ethereum network, are at the forefront of this technological leap forward,” says Rahma. According to the BeInCrypto analyst, they are the backbone of many applications. Although the truly valuable application for smart contracts still needs to be found.

DeFi is also currently mainly used as a casino for altcoins. The question remains whether we will ever trade shares on DeFi platforms and what that adds to using normal brokers.

Huge belief in digital art

For Rahma, digital art in particular seems to be an important argument for Ethereum’s future position of power.

“The recent uptick in NFT investing is underlined by Hivemind Capital Partners’ $50 million fund; that was founded to invest in NFTs. This indicates that we are dealing with a maturing market and that the applications for Ethereum continue to expand,” Rahma claims.

Ultimately, we just have to see to what extent the NFT market can revive during this bull run. It was a success in 2021, but there is little left of it at the moment. Will people really warm up to digital pictures again and start throwing millions?

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