Ethereum Over Bitcoin in 2026? Which Is the Better Choice Now

▲ Bitcoin (BTC), Ethereum (ETH)

As Bitcoin and Ethereum have both fallen nearly 30% over the past year, an analysis suggests that from a long-term investment perspective beyond 2026, Ethereum has clearer growth drivers.

According to investment-focused media outlet The Motley Fool on February 21 (local time), Bitcoin (BTC) and Ethereum (ETH) have each declined by about 30% over the past 12 months. The drop was driven by a combination of factors, including rising U.S. Treasury yields, expectations of a slower pace of monetary easing, weakening institutional demand, and cascading sell-offs triggered by leveraged liquidations. Nevertheless, both assets are considered representative “blue-chip” cryptocurrencies supported by spot exchange-traded funds (ETFs), and are still viewed by some as long-term investment options.

Bitcoin is mined using a proof-of-work (PoW) system, with its total supply capped at 21 million coins. Approximately 20 million have already been mined, and it undergoes a “halving” every four years, reducing mining rewards by half. Due to this scarcity, it is often referred to as “digital gold,” but its native blockchain does not support staking or smart contracts. In contrast, Ethereum transitioned to a proof-of-stake (PoS) system following “The Merge” in 2022, enabling staking and establishing itself as a smart contract platform that supports decentralized applications and the development of various crypto assets.

Ethereum’s circulating supply stands at approximately 121.6 million coins, with no maximum supply limit. Instead, it combines new issuance through staking with a token-burning mechanism that removes a portion of tokens from circulation. As of last September, around 32,000 active developers were participating in the network, maintaining Ethereum’s lead in the developer-centric blockchain ecosystem.

From a long-term investment standpoint, the outlet rated Ethereum as more promising. The Ethereum Foundation plans three major upgrades in the coming years—“The Verge,” “The Purge,” and “The Splurge”—aimed at improving scalability, easing network congestion, reducing gas fees, and enhancing overall efficiency. Expansion of Layer 2 (L2) blockchains is also expected to improve transaction speeds. Analysts suggest that these structural improvements could act as catalysts, increasing token utility and strengthening the ecosystem’s competitiveness.

Meanwhile, despite its increasing scarcity, Bitcoin faces competition from traditional inflation-hedging assets such as stablecoins and gold. If investors shift toward more conservative assets, the possibility of price stagnation or decline cannot be ruled out. While both assets remain leading cryptocurrencies, Ethereum is seen as having a clearer growth trajectory.

Disclaimer: This article is for investment reference only and does not assume responsibility for any investment losses incurred based on it. The content should be interpreted for informational purposes only.