Bitget App
Trade smarter
MarketsTradeFuturesBotsEarnCopyWeb3
Hot Topics Crypto trends
Bitcoin vs Ethereum: Which One Should You HODL?

Bitcoin vs Ethereum: Which One Should You HODL?

Beginner
2025-05-23 | 5m

In the world of cryptocurrency, two names consistently rise to the top: Bitcoin and Ethereum. They dominate headlines, shape market movements, and account for the majority of the crypto market’s total value. But while they’re often mentioned together, they serve very different purposes — and understanding those differences is key if you’re thinking about which one to HODL for the long term.

Bitcoin is widely known as “digital gold,” prized for its limited supply and its role as a store of value — a hedge against inflation and uncertainty. Ethereum, on the other hand, is the backbone of a decentralized internet — a powerful platform for building smart contracts, decentralized finance (DeFi), non-fungible tokens (NFTs), and more. Both assets have delivered massive returns, sparked global innovation, and built passionate communities. But which one fits best into your crypto future?

Price History: Bitcoin vs Ethereum

Both Bitcoin and Ethereum have experienced explosive growth since their launches — though their journeys have been very different.

Bitcoin was launched in 2009 and had virtually no value at first. Over time, as awareness and adoption grew, so did its price. It reached around $69,000 during the 2021 bull market and crossed the $100,000 mark briefly in early 2025. These price surges have often been followed by sharp corrections, but overall, Bitcoin has steadily climbed in value over the long term — earning its reputation as a volatile, but highly rewarding, investment.

Bitcoin vs Ethereum: Which One Should You HODL? image 0

Bitcoin Price

Source: CoinMarketCap

Ethereum , launched in 2015, started out trading for just $1–$3 per coin. It quickly gained traction as developers began building on its blockchain, pushing its price to an all-time high of nearly $4,800 in late 2021. By 2025, it trades in the mid-$2,000s, reflecting a recovery from recent market downturns. Though newer than Bitcoin, Ethereum’s rise has been equally dramatic, driven by its growing role in powering decentralized applications, finance, and digital assets.

Bitcoin vs Ethereum: Which One Should You HODL? image 1

Ethereum Price

Source: CoinMarketCap

What If You Bought Bitcoin or Ethereum Earlier?

Looking back, it’s clear that both Bitcoin and Ethereum have delivered extraordinary returns for long-term investors. While past performance is not a guarantee of future results, reviewing historical ROI provides valuable insight into the growth potential of these two leading cryptocurrencies.

Between January 2024 and May 2025, Bitcoin appreciated by approximately 152%, while Ethereum saw a modest gain of around 13%. Despite Ethereum’s slower short-term growth, both assets have demonstrated significant long-term performance. From 2020 to 2025, Bitcoin increased nearly tenfold, while Ethereum slightly outperformed with an approximate elevenfold return.

Since their inception, the growth has been even more dramatic. A $1 investment in Bitcoin in 2010 could now be worth over $2 million. Similarly, a $1 investment in Ethereum in 2016 would be worth nearly $3,900 by 2025. These figures underscore the impact of early adoption and the long-term value of holding through market volatility.

Bitcoin vs Ethereum: Who Dominates the Market?

Market capitalization — the total value of all coins in circulation — is one of the most important indicators of a cryptocurrency’s size, stability, and influence. In this area, Bitcoin and Ethereum clearly lead the industry.

As of 2025, Bitcoin maintains the largest market capitalization in the crypto space, accounting for approximately 60% of the total market. Its dominant position reflects its role as the original cryptocurrency and a trusted store of value. Ethereum, holding the second spot, comprises around 10–20% of the market, thanks to its foundational role in powering decentralized applications, finance, and digital assets.

Combined, Bitcoin and Ethereum make up over 70% of the entire crypto market — a figure that highlights their significance and staying power. Bitcoin’s capped supply of 21 million coins adds to its scarcity appeal, while Ethereum’s supply is not fixed, though recent network upgrades have slowed its issuance. For investors, these metrics help frame each asset’s role: Bitcoin as a “blue-chip” crypto with long-term value storage, and Ethereum as a dynamic, utility-driven platform with expansive use cases.

Which One Is Faster and More Affordable?

When comparing Bitcoin and Ethereum for everyday use, transaction speed and cost are key factors — and the two networks differ significantly.

Bitcoin processes about seven transactions per second, with new blocks every 10 minutes. This slower pace can lead to higher fees during busy periods — sometimes rising above $20. On quieter days, fees often drop below $2. To improve speed and reduce costs, Bitcoin utilizes the Lightning Network, which enables fast, low-cost off-chain transactions.

Ethereum is faster, producing blocks every 12 seconds and handling 15–30 transactions per second. While it was once known for high gas fees, major upgrades and the rise of Layer 2 solutions like Arbitrum and Optimism have changed that. By 2025, simple Ethereum transactions can cost as little as $0.01.

In short, Bitcoin is ideal for secure, high-value transfers, while Ethereum now offers greater speed and affordability — especially for app-based interactions.

Which One Has More Developers?

Ethereum has the largest developer community in crypto, with over 7,000 active monthly developers as of 2025. This strong support fuels its rapid innovation in areas like decentralized finance (DeFi), NFTs, and smart contracts. Its flexible, upgrade-friendly environment makes it the go-to platform for builders and startups in the blockchain space.

Bitcoin, on the other hand, has a smaller but highly focused developer base — less than 1,000 active developers. Its development pace is more cautious, emphasizing security and long-term stability. Most improvements revolve around scalability and payment solutions like the Lightning Network, though recent trends like Ordinals show Bitcoin is still evolving in its own way.

How Green Are Bitcoin and Ethereum?

Bitcoin still relies on Proof of Work (PoW), a system that secures the network through energy-intensive mining. This method involves powerful computers solving complex problems, which consumes a large amount of electricity — comparable to the energy use of entire small countries. While efforts to use renewable energy are growing, Bitcoin’s environmental impact remains significant.

Ethereum, on the other hand, made a major shift in 2022 by moving to Proof of Stake (PoS). This change reduced its energy consumption by over 99%, as it no longer depends on mining. Today, Ethereum runs on a much more efficient model, making it one of the most environmentally friendly blockchains. For anyone concerned about sustainability, Ethereum clearly has the greener footprint.

BTC vs ETH in the Real World

While Bitcoin and Ethereum are often grouped together as leading cryptocurrencies, they serve very different real-world purposes. Bitcoin is mainly used as a store of value — often called “digital gold.” Its fixed supply makes it attractive for long-term holders and those seeking protection against inflation. It's also gaining traction among institutions, with Bitcoin ETFs and corporate adoption helping to push it further into the financial mainstream. In some countries, Bitcoin is even recognized as legal tender.

Ethereum, on the other hand, is all about utility and innovation. It powers a wide range of decentralized applications, including platforms for lending, trading, gaming, and NFTs. Developers use Ethereum to build smart contracts that operate without middlemen, making it the foundation of what’s known as Web3. Its adoption is driven not just by investment, but by its role in powering the infrastructure of the next-generation internet.

Conclusion

When it comes to Bitcoin vs Ethereum, there’s no single right answer — it all depends on what kind of investor you are and what you believe in.

If you’re looking for a well-established, long-term store of value with growing institutional support, Bitcoin might be the better choice. Its simplicity, scarcity, and track record give it a strong reputation as “digital gold.” On the other hand, if you’re excited by blockchain technology, innovation, and the future of decentralized applications, Ethereum offers more upside in terms of real-world utility and ecosystem growth — especially now that it's greener and more affordable to use.

Many crypto investors choose to hold both, seeing Bitcoin as a foundation for financial stability and Ethereum as a gateway to future innovation. Whichever you decide to HODL, make sure it aligns with your goals, your risk tolerance, and your time horizon. And remember — in crypto, patience often pays.

Register now and explore the wonderful crypto world at Bitget!

Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

Share
link_icon
How to sell PIBitget lists PI – Buy or sell PI quickly on Bitget!
Trade now
We offer all of your favorite coins!
Buy, hold, and sell popular cryptocurrencies such as BTC, ETH, SOL, DOGE, SHIB, PEPE, the list goes on. Register and trade to receive a 6200 USDT new user gift package!
Trade now