Ethereum: Why ‘we still haven’t seen anything yet’
Ethereum, the second-largest cryptocurrency, has been actively forging a new path as it loses correlation from Bitcoin. This has resulted in the value of Ether limiting the intensity of dumps witnessed in the Bitcoin market and recover faster. With the third-quarter kick-starting, analysts believed Ethereum was among the top 5 picks for alt traders and HODL-ers to watch out for.
Ethereum’s unrealized potential
According to the market analysis from Coin Bureau, Ethereum had a “much higher chance to achieve upside potential” in the coming months. Ethereum team has been working relentlessly in transforming its existing proof-of-work [PoW] system into proof-of-stake [PoS]. Thus, the changes taking place in the Ethereum ecosystem were pushing its potential as a future crypto higher.
The Coin Bureau Guy, as popularly referred to by the crypto industry, noted the deployment of the Ethereum Improvement Protocol [EIP] 1559 to be a major factor in this. It could turn Ether into a deflationary asset with enough activity since a portion of every transaction fee is burnt. Going by the clear demand and supply logic, this could result in pushing the value of ETH up north.
Analyst Elliot Wainman elaborated on this supply shock that could take place in the market. He stated,
“ETH is literally on fire. The transition to proof of stake will make this even more dramatic, and it’s important to realize that EIP-1559 isn’t even supported by MetaMask yet, much less all of the major DApps [decentralized applications]. As much as this has been an amazing supply shock so far, we still haven’t seen anything yet…”
Similarly, institutional investment in Ethereum was rising along with market shares for the asset for this group of investors. The digital asset is primed for an institutional-powered rally in 2020 and could challenge the actual market cap of Bitcoin soon.
Meanwhile, demand for an Ethereum exchange-traded fund [ETF] has remained but what’s interesting is that the United States Securities and Exchange Commission has not yet rejected it but kept it pending. While the SEC has rejected multiple BTC ETF proposals, the ETH ETF review seemed a positive change.
Based on its current network development and fundamental activities, ETH could remain northbound.