Is it really ‘dangerous to give predictions on’ this Ethereum high?
Ethereum, the second-largest public cryptocurrency based on market capitalization, has shown remarkable growth over the past year. The largest altcoin has witnessed institutional as well retail interest especially considering the buzz around its much-anticipated upgrade. Pete Humiston, the current manager of Kraken Intelligence laid out a significant difference between Bitcoin and Ethereum, stating:
- The number of ETH whales (wallets > 10K ETH): At an all-time HIGH
- The number of Bitcoin whales (wallets >1k BTC): Approaching a year-to-date LOW
In a recent interview with New York Magazine, Bitcoin bull Mike Novogratz shared his optimistic thoughts on the altcoin as well. Founder and CEO of Galaxy Digital, Novogratz predicted a meteoric urge that can surpass ETH’s previous ATH.
In April, ETH recorded an ATH price mark of around $4,362. According to Novogratz, it can cross the previous mark because of the following factors,
“We already had payments and stable coins that really kind of gave Ether the kick last year. But then all of a sudden, you have decentralized finance (DeFi) and NFTs (non-fungible tokens) both on Ethereum at the same time roughly, with wild accelerating growth.”
Further, he added:
“You know, it’s dangerous to give predictions on the highs. But could it get to $5,000? Of course, it could.”
Novogratz currently has invested around 85% of his net worth in the crypto industry. Ethereum, at the press time, was trading just under the $2100 price mark with a correction of 8.2% in the past 24 hours.
Another analyst presented his take on the Ethereum vs Bitcoin debate:
“Ether beats bitcoin as a store of value. The Ethereum ecosystem…provides developers a way to create new apps. Most of DeFi apps are being built on Ethereum. The greater number of transactions in ether vs bitcoin reflects this dominance” – Goldman Sachs Global Macro Research pic.twitter.com/vNkQ1HlDYM
— SantΞago R Santos (@santiagoroel) May 22, 2021
Apart from Bitcoin’s institutional adoption, El Salvador became the very first country to make Bitcoin a legal tender. Following this news, other Central and South American countries have started to look at incorporating Bitcoin.
On the other side, Ethereum has had no such luck (at least not yet). However, with the anticipated tech upgrade, one might see ETH’s adoption rates increasing.