In the ever-evolving world of cryptocurrencies, Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO:ETH) have consistently stood out as two powerhouses.
As we step into June, these digital giants continue to dominate the market and possess immense potential for investors looking to capitalize on future growth of cryptocurrencies.
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Expanding horizons beyond store of value
Bitcoin, the world's first and most valuable cryptocurrency, has traditionally been viewed as a store of value. Due to its limited supply, investors typically implement a buy-and-hold strategy in hopes that Bitcoin's price will continue to climb.
While this strategy has produced considerable returns over the years, the narrative around Bitcoin as only a store of value is slowly beginning to shift.
The introduction of a new protocol known as Ordinals allows for non-financial data such as pictures, audio, and videos, to be attached to individual satoshis, the smallest denomination of a Bitcoin. Despite Bitcoin technically lacking smart contract capabilities, the foundation of traditional non-fungible tokens (NFTs), Ordinals are remarkably similar to NFTs and have surged in popularity recently.
Ordinals not only allow for Bitcoin-based NFTs, but they also create a means for additional use cases such as the creation of tokens that were previously limited to blockchains like Ethereum. Referred to as BRC-20 tokens, these assets can be used for applications in decentralized finance such as yield farming, exchanges, and much more.
Although Ordinals are still very much in their infancy, it has pushed the notion of additional use cases on Bitcoin to the forefront of the industry. While development of Bitcoin outside of just a store of value remains in an experimental stage, momentum is building.
Should new use cases for Bitcoin continue to develop, it will likely add further demand for the world's most valuable cryptocurrency. Investing in Bitcoin today becomes increasingly attractive due to its limited supply and the potential for renewed demand, especially considering its price currently stands more than 60% below its all-time high.
The unrivaled DeFi standard
Even though Bitcoin might be starting to gain functionality, Ethereum remains the undisputed leader of multipurpose blockchains. Ethereum's smart-contract capabilities, coupled with its thriving ecosystem, have solidified its position as the go-to platform for NFTs, stablecoins, and various other decentralized finance (DeFi) applications.
As the first blockchain to be smart-contract compatible, thereby allowing for decentralized applications to be developed, there's no doubt Ethereum got a head start. But even with more participants entering the market claiming to outdo Ethereum at its own game, the reality is that these efforts have remained futile.
Today Ethereum still dominates the DeFi economy and is the de facto home of all things DeFi. At the time of writing, Ethereum holds nearly 60% of the value across all of DeFi and there is little sign of this changing as the next closest blockchain is Tron with a measly 12%.
While Ethereum's price remains well off from its all-time high (more than 60%) the champion of DeFi looks to be extremely discounted at today's prices creating a valuable opportunity for long-term investors.
The key to crypto success
In a market that has produced lackluster results over the past couple of years, it is crucial to stay focused on proven assets. Bitcoin and Ethereum have demonstrated their resilience and ability to withstand market fluctuations, making them solid investments even during uncertain times. As the two lead cryptocurrency powerhouses, Bitcoin and Ethereum often lead the market trends and pull the entire industry along with them.
Now is not the time to get experimental with investments. Instead, simplicity and stability should guide your choices. By investing in Bitcoin and Ethereum, you align yourself with the market leaders, leveraging their established track records and widespread adoption. This approach provides a solid foundation for potential gains and reduces exposure to unnecessary risks.
