Ethereum News Today: Ethereum Outperforms Bitcoin 30 Times Over Past Decade Says Ether Machine

The Ether Machine, a newly established company, has made a bold claim that Ethereum (ETH) has outperformed Bitcoin (BTC) over the past decade. This assertion comes as the company prepares to launch with a substantial Ethereum reserve exceeding $1.5 billion, underscoring the growing confidence in Ethereum's role as a foundational blockchain asset. The company's co-founder and chairman, Andrew Keys, has personally committed approximately $645 million in an anchor investment, further solidifying the entity's backing by prominent crypto investors.

Keys, who is an “Ethereum guy” and does not own Bitcoin, argues that investors would have made much more money investing in Ether than Bitcoin a decade ago. He stated on CNBC’s Squawk Box that over the last decade, since Ethereum started, investors would be 30 times wealthier had they owned it since then. This claim is significant, given the historical dominance of Bitcoin in the cryptocurrency market. Ethereum's rally, which has seen it gain over 175% in less than a quarter, further supports this assertion.

The Ether Machine's strategy involves generating returns through staking, restaking, and decentralized finance strategies. The company aims to maintain institutional-grade security while pursuing these financial maneuvers. This approach is part of a broader trend where Ethereum and stablecoin-linked blockchains have seen significant inflows, outperforming Bitcoin ETFs with consecutive inflows. This trend highlights the increasing interest and investment in Ethereum and related assets.

The company's decision to go public with over $1.5 billion in Ethereum reserves, including 400,000 ETH locked in its vault, is a testament to the confidence in Ethereum's potential for growth and stability. This would eclipse the current holdings of other firms, which have 300,000 and 280,000 in their ETH treasuries, respectively. The launch will be through a merger with a blank-check company, with a combined entity called “The Ether Machine.”

Keys also highlighted that Ethereum is experiencing power law dynamics where 90% of tokenized assets are deployed on Ethereum, similar to the power law dynamics of Google where 90% of searches happen with Google. He also mentioned that the largest beneficiary of the GENIUS Act is Ethereum, because the majority of stablecoins are deployed on Ethereum. This further underscores the growing confidence in Ethereum's role as a foundational blockchain asset.

However, while the figures comparing Ether and Bitcoin returns over time aren’t inaccurate, it also paints an incomplete picture of the two assets’ meteoric gains since inception. The Bitcoin network was created in 2009, and one of the earliest indicators of its price was on the now infamous Pizza Day in May 2010, when one BTC was worth approximately $0.0041. The asset was priced around $0.05 when it first traded on the now-defunct Mt. Gox exchange in July 2010. It has since gained in value by more than 234 million percent.

Meanwhile, Ethereum’s genesis block came more than six years later, in July 2015, when Bitcoin was already trading at $280. Ether traded at around $1.60 on average in the month following its genesis and has gained 236,837% since then. Recent performance could also add a new dimension to the argument. Ether has yet to reach a new all-time high this cycle and remains down 23% from its 2021 peak price of $4,878, trading largely sideways since 2022. Meanwhile, Bitcoin has notched a new all-time high on July 14 and has gained 78% since its 2021 cycle peak.

Investors are rotating into Ethereum en masse, which explains its sustained rally. It is clear that momentum has shifted toward Ether, which makes sense as Ethereum is still trading well below its all-time highs and traders believe it will close the gap in the coming months. This trend is supported by the increasing interest and investment in Ethereum and related assets, as well as the growing confidence in Ethereum's role as a foundational blockchain asset.