Deciding between the two leading cryptocurrencies in the world can be more challenging than it appears.
So far this year, Bitcoin (BTC +0.12%) and Ethereum (ETH -0.67%) are closely matched in performance. Bitcoin has increased by 25% in 2025, while Ethereum has risen by 30%.
Although Bitcoin maintains its position as the clear market leader with a significant market cap of $2.3 trillion, Ethereum has seen impressive growth recently. Between May and September, Ethereum’s price more than doubled, recovering any shortfalls compared to Bitcoin. This raises the question: which cryptocurrency is the wiser investment now?
Historical Performance
Bitcoin is often celebrated as the top-performing asset of the last decade, being the best investment in eight of the past ten years. Typically, its annual gains are substantial, often reaching triple digits.
However, Ethereum has shown remarkable performance too. Over the last five years, Ethereum has outpaced Bitcoin: Bitcoin has grown by an astounding 938%, while Ethereum has surged by 1,059% during the same period.
Emerging Digital Asset Treasury Companies
Another important factor is the emergence of digital asset treasury (DAT) companies, which are specifically set up to accumulate particular cryptocurrencies. These companies gather funding from investors to purchase as much of a specific cryptocurrency as possible.
Bitcoin remains in the spotlight here, largely due to Strategy (MSTR -0.20%), previously known as MicroStrategy. Since August 2020, Strategy has consistently built its Bitcoin holdings, now owning roughly 640,000 Bitcoin or about 3% of the total supply.
The Potential Advantage of Ethereum
Ethereum might have a hidden edge: it operates on a proof-of-stake blockchain, while Bitcoin uses a proof-of-work blockchain. This distinction allows Ethereum investors to earn passive income through staking, which involves temporarily locking up cryptocurrency in exchange for rewards. Currently, staking yields for Ethereum are around 3%, providing a significant incentive for institutional investors.
Which Cryptocurrency to Choose?
Given its recent performance, Ethereum is a compelling choice. It’s outshining Bitcoin this year and over the past five years, supported by significant momentum from Ethereum treasury companies actively buying up the asset. It appears that investors are eager to accumulate as much Ethereum as possible.
Therefore, surprisingly, Ethereum may be the more favorable investment as we approach the latter part of 2025.
