2020-12-30 17:01 |
Bitcoin is not the only asset that is rejoicing in greens. As a matter of fact, compared to Bitcoin’s 285% year-to-date rally, Ether recorded 455% gains in 2020.
It has actually been after 18 months that ETH finally breached the $700 mark.
As Jesse Powell, co-founder and CEO of cryptocurrency exchange Kraken noted, Ethereum has performed “amazingly well” this year, having seen tremendous returns. Powell in his recent interview with Bloomberg said,
“I think the future is extremely bright for Ethereum as well as for Bitcoin. And I think it's another asset that people should be looking at if they're looking for something else to get into an encrypted space.”
The second-largest digital asset is actually still down 49% from its all-time high of $1,420, on Coinbase.
Currently trading around $725, ETH’s uptrend only started at the beginning of last week while Bitcoin consolidated some following yet another new ATH.
Institutional InterestInterestingly for ETH, in just over a month CME will be launching Ether futures contracts which are expected to bring a herd of institutional buyers.
“ETH is undervalued in terms of institutional buying. Institutional investors would eventually consider ETH for their portfolio next to Bitcoin,” says Ki-Young Ju of data provider CryptoQuant.
He further noted that there is a big gap between Grayscale Investments’ Bitcoin and Ethereum stash which he expects to contract soon.
ETHE — Ethereum product of Grayscale, the largest asset manager which caters to accredited and institutional investors and high net worth individuals — holds 2.94 million ETH.
This represents 2.54% of Ether’s circulating supply. ETHE is currently trading at a premium of 115.97%, which is much higher than GBTC’s 18.86% but much lower than the 2963.83% premium institutional investors are paying for buying LTCN, as per Bybt.
However, Grayscale hasn’t added any new ETH to its holdings since Dec. 9, which is unlike their BTC holdings which were last added on Dec. 25.
A huge success storyWhile mentioning Ethereum, Powell also noted decentralized finance (DeFi), a sector that has more than $14 billion locked in it and 7.1 million of ETH.
“The DeFi story is growing and becoming a bigger piece of the ecosystem. These days you're seeing middlemen completely removed from financial contracts through DeFi which is largely happening on Ethereum. So that's a huge success story that's in the process of a major protocol upgrade.”
Jesse Powell Co-Founder & CEO Kraken
It was on Dec. 1st that Phase 0 of ETH 2.0 was launched, the first step towards making the network faster and cheaper that includes the transition from proof of work (PoW) to (proof of stake (PoS). Since then just over 2.31 million ETH has been locked in its deposit contract.
However, ETH miners continue to pump in hashing power insanely that pushed the network’s hash rate 100% up since the beginning of the year.
Ethereum/USD ETHUSD 733.6087 $12.69 1.73% Volume 17.81 b Change $12.69 Open$733.6087 Circulating 114.05 m Market Cap 83.67 b baseUrl = "https://widgets.cryptocompare.com/"; var scripts = document.getElementsByTagName("script"); var embedder = scripts[scripts.length - 1]; var cccTheme = {"Chart": {"fillColor": "rgba(248,155,35,0.2)", "borderColor": "#F89B23"}}; (function () { var appName = encodeURIComponent(window.location.hostname); if (appName == "") { appName = "local"; } var s = document.createElement("script"); s.type = "text/javascript"; s.async = true; var theUrl = baseUrl + 'serve/v1/coin/chart?fsym=ETH&tsym=USD'; s.src = theUrl + (theUrl.indexOf("?") >= 0 ? "&" : "?") + "app=" + appName; embedder.parentNode.appendChild(s); })(); var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~ETH~USD"); The post Ethereum Is A ‘Huge Success Story’ But is ‘Undervalued’ in Terms of Institutional Buying first appeared on BitcoinExchangeGuide.Similar to Notcoin - TapSwap on Solana Airdrops In 2024
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