The popular crypto trader and host of Coin Bureau outlines why he believes Ethereum (ETH) has a chance of gaining a larger market cap than Bitcoin (BTC).
In a new video, pseudonymous analyst Guy tells his 1.17 million subscribers that the decentralized finance (DeFi) space has the potential to attract a rush of investors looking for returns that are superior to traditional financial instruments.
Given that DeFi is largely dependent on Ethereum, the analyst says the possible surge in decentralized financial protocol adoption could push ETH into becoming the largest crypto in the market. He says the potential trigger could be Ethereum and other smart contract platforms undergoing their expected upgrades to become cheaper and more efficient.
“Once these upgrades are complete, demand for these smart contract cryptocurrencies will skyrocket for one reason: DeFi. The returns you can find on the Vanilla DeFi protocols on your own are much higher than anything centralized financial intuition can currently offer you. Investors big and small are feeling the pressures of low interest rates and high inflation, which has basically broken any return below 5-7% into a break-even number. Because of this, institutional investors have amassed DeFi …
While Bitcoin is still recovering from its hash rate collapse, Ethereum’s was comparatively untouched and its decentralized financial ecosystem has also remained stable. I’m sure that institutions also like that they can have a say in Ethereum 2.0 by staking out ETH, which is now available at a bank in Switzerland. “
The closely-followed crypto influencer says Ethereum has a good chance of overtaking Bitcoin and also names a catalyst that could seal the deal overall.
“Because of these and other factors such as overall user adoption, I think it is very likely that Ethereum will flip Bitcoin by market cap when the next bull run comes. This is essentially guaranteed when Ethereum has a [exchange-traded fund] before Bitcoin, and it looks like this could just happen. “
At the time of writing, several Ethereum Exchange Traded Funds (ETFs) have been filed for registration with the U.S. Securities and Exchange Commission (SEC), but none have been publicly approved. The Coin Bureau host assumes that one of the submissions has already been approved, although no approval has been announced.
“Well, maybe that’s just wishful thinking, but for me it’s not a question of ‘if’, it’s a question of ‘when’.”
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