Ethereum needs no introduction. Second only to bitcoin in terms of market cap, it’s infinite utility has allowed it to become one of the most widely used networks in the crypto world.
For months, Ethereum’s price has appeared to be suppressed. Many have argued that it should have seen a rise much earlier. But this idea now seems to be catching up with reality as Ether has surprised us in recent weeks with new all-time price highs.
ETHEREUM’S PRICE EXPLOSION— A QUICK RECAP
Let’s be honest. — Although bitcoin (BTC) has established itself as the first truly disruptive cryptocurrency, Ethereum (ETH) has more practical utility. After months of being priced well below its real value, Ethereum un-tied itself from that leash in 2021. Since January, it has almost seen an almost fivefold increase in its price — from 730 to around 3,500 dollars.
What is behind this recent spike in price? Well, in short, Ethereum is the network where everything happens in the crypto stratosphere, from DeFi to non-fungible tokens and everything in between.
So it was only a matter of time before the world realized Ethereum’s potential. And indeed, we seem to be in the presence of a perfect storm. The European Investment Bank (EIB) has taken to creating digital bonds in Ethereum. Interest in NFTs is growing at a rapid clip.
Then there is the cliffening which coming in July. And let’s not forget Ethereum 2.0.
ETHEREUM’S LOCKED POTENTIAL AND INSTITUTIONAL PROOF OF MONETARY VALUE
So, what’s the limit for Ethereum, a currency that has not stopped surprising us in 2021? Fundstrat, an independent research boutique, has a quite impressive target for ETH: 10,500 dollars.
On April 29, Ethereum had just hit 2,800. In that briefing, Funstrat stood by its recommendation to overweight Ethereum over bitcoin. They also reiterated their ambitious 10.5K target for Ethereum.
JP Morgan is another one that has leaped on the Ethereum bandwagon. The US investment bank in comparing the two top-dogs of crypto has stated that it believes that ETH will outperform BTC. They claim that ETH has a much more liquid and less overleveraged market than BTC. They also point out the usefulness of ETH in the creation of new currencies and smart contracts.
Many people have been closely watching the price of Ethereum and the price of BTC since the beginning of the pandemic. Will ETH reach the height that bitcoin is flying at today? Too early to tell. The only thing we can say is that things are looking pretty good for the market’s second-in-command.