Alex Mashinsky CEO of Celsius, a DeFi bank known for his vocal takes and strong advocate of the Ethereum network says BTC is already losing its market dominance to Ether.
Once in a while, strong advocates of both Bitcoin and Ethereum commonly referred to as Maxis get into heated arguments on how either Bitcoin can never be flipped or that Ethereum will topple Bitcoin as the most valued cryptocurrency network. Mashinsky, while speaking in a Monday interview with Kitco News argued that the “flippening” is happening already and not in the distant future.
Mashinsky who further buttressed his position by using figures from his platform saying,
“We manage about $17 billion in deposits, or in customer coins, and the number one coin held in dollar terms is Ethereum.”
He wasn’t stopping there as he further argued that Ethereum will surpass the Bitcoin network in the next two years per market capitalisation.
“The flippening already happened. Ethereum already surpassed Bitcoin in dollar terms as the total holdings of the Celsius community, and I think that the broader market will follow it in the next year or two. We will see that flippening happening also in the broader market.”
Looking at the pace of innovation that happens on both platforms, Mashinsky thinks Ether’s future dominance will stem from the use cases that keep stacking up on Ethereum when compared to Bitcoin’s. While he recognises the store of value narrative as the most solid use case of Bitcoin, Ethereum on the other hand thrives from the fact that it’s home to several DeFi platforms championing yield farming on them.
According to Celsius CEO,
“Yield is an application that just has a broader user base. So I think over time you will see a broader adoption of Ethereum than of Bitcoin. But obviously both of them are exceptional applications and exceptional blockchains, and we will see a broad adoption of both, it’s just that one will exceed the other.”
DeFi has been the major driver of activities on the Ethereum network even when crippling gas charges became prevalent and almost rendered the network unusable for users who engaged in micropayment services and other use cases that the largest smart contract network supports.
Celsius Network is one of the DeFi products, despite hosting its service for its clientele in a centralised manner in what the industry has come to know as CeDeFi today. Launched in 2018, Celsius Network is a lending and borrowing platform that allows users to transfer their coins to the Celsius wallet and borrow dollars or stablecoins against their crypto collateral. Lenders earn rewards for providing liquidity to the platform. Celsius Network operates its own CEL token that is an ERC-20 coin running on the Ethereum network.
Last November, upon the release of Eth 2.0 deposit contract, Mashinsky demonstrated his strong support for Ethereum by transferring 25,000 ETH to help hit the milestone for the activation of the Beacon Chain. He doesn’t stand alone among those who believe Ether will flip Bitcoin, Galaxy Digital founder and CEO Mike Novogratz also predicted that Ether could become the “biggest cryptocurrency one day.”