A recent report indicates that the growing usage of stablecoins on the Ethereum network is set to enhance its utility in comparison to Bitcoin.

Fidelity highlights that while Bitcoin is primarily seen as a long-term store of value, Ethereum functions as a medium for asset transfers.

In 2023, the cryptocurrency market saw significant activity, with approximately $3.4 trillion in Bitcoin, $1.4 trillion in Ether, and $3.5 trillion in Ethereum layer-1 stablecoins being transferred.

Current market values show Ethereum trading at $2,332 and Bitcoin at $57,075, reflecting their respective positions in the market.

The investment thesis for Bitcoin is largely based on its potential to serve as a hedge against currency inflation.

Ethereum's strong network effects provide it with a considerable advantage over other smart contract platforms.

Fidelity also predicts that the increasing prominence of stablecoins may lead to a greater divergence between Bitcoin (BTC) and Ethereum (ETH).