VanEck says Ethereum might be a better store of value compared to Bitcoin

Bitcoin, on the other hand, continues to rely on inflationary issuance to reward miners, raising long-term sustainability questions, especially as halving events reduce miner rewards.

In the past year, Bitcoin miners earned just $278 million in transaction fees but $14.6 billion from network inflation. If Bitcoin‘s price fails to keep up with declining block rewards, the network’s security model may face pressure to adapt.

One proposed solution, a hard fork introducing new inflation, would contradict one of Bitcoins foundational principles, which is its “fixed supply.”

VanEck‘s argument is reinforced by the growth of Ethereum on public companies’ balance sheets, up to 966,000 ETH (worth about $3.5 billion) from just 116,000 at the end of 2024.

Institutional demand for ETH has also surged, thanks in part to inflows from newly approved spot Ethereum ETFs and regulations that have clarified and pushed stablecoins to mainstream prominence. Over the last month, ETH‘s price has climbed 54%, outpacing Bitcoin’s 10% rise.

Despite uncertainties around ETHs long-term inflation path, analysts believe its current trajectory and utility make it a credible store of value.

KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage