Ethereum could be a higher value asset than Bitcoin, explains Arash Ghaemi of Two Prime Digital Assets

Arash Ghaemi, Strategy Director at Two first-class digital assets, a “trusted” investment partner of HNWIs, family offices, institutions and corporate treasuries seeking “smart” exposure to Bitcoin (BTC) and Ethereum (ETH), notes that there are several possible reasons why ETH is “a higher upward trend โ€can be. Treasury Reserve Asset as BTC.

14 reasons $ ETH is a higher value asset than #Bitcoin ๐Ÿ‘‡

– Ash (@investindigital) April 30, 2021

Ghaemi argues that Ethereum is “a proven store of value that has appreciated 85,587% since its inception in 2015.” He also mentions that ETH is “only 25%” of the Bitcoin market (worth just over 1 trillion US dollars versus Ethereum, at over $ 317 billion at the time of writing).

Ghaemi further notes that the stake value of Ethereum now exceeds $ 9 billion, which is around 3.26% of the total ETH supply. Ghaemi points out that here – with the Ethereum Imrovement Proposal (EIP) 1559 – there is a shortage that “effectively cancels the ETH inflation rate of 4.37%, which reduces the overall supply”.

Ghaemi shares other reasons he believes Ethereum could be a better reserve asset than Bitcoin, revealing:

  • 22.5% of ETH’s supply in US dollars is “illiquid, locked in smart contracts, and that number will only increase over time as use cases accelerate.”
  • Whale wallets grow “(wallets with more than 10,000 USD ETH)”
  • $ 66 billion “locked in DeFi protocols growing at nearly 40% per month”
  • Grayscale holds “around 3% of the ETH supply that is not sold as quickly”
  • Ethereum has 2,325 active monthly developers. “Compared to #Bitcoin 361 – development leads to more dapps, more innovation, more interruptions, more mass acceptance and higher ETH prices.”
  • The ETH derivatives to the value of “ETH have risen from USD 50 million in April 2020 to a total of USD 3 billion in Open Interest – institutional adoption signal”.
  • The ETH futures positions have “seen a 20-fold increase and are now at USD 7.5 billion open interest – institutional adoption signal”.
  • The trading volume of 24-hour ETH options “rose from USD 1 million in May 2019 to over USD 1 billion in daily open interest – institutional adoption signal”.
  • 3 Ethereum ETFs were recently approved in Canada, and CME futures started trading earlier this year. This signals the maturity of assets with a lot of upside potential – institutional adoption signal.

Many other participants in the crypto industry have also made strong arguments as to why Ethereum could become a dominant digital good in the years to come. Researcher Spencer Noon has also shared his list of reasons why he thinks a $ 10,000 price tag for ETH is possible.

10 characters $ ETH is well on its way to $ 10k ๐Ÿ‘‡๐Ÿผ

– Spencer Noon @ (@spencernoon) April 30, 2021

Lunch Notes:

  • Ethereum “dwarfs any blockchain in terms of fees paid, with a current execution rate of nearly $ 7 billion – confirming the massive demand for ETH block space.”
  • Ethereum “pays off a value of $ 30.5 billion a day, far more than Bitcoin and any other blockchain – to put this into context, PayPal pays off about $ 2.5 billion a day.”
  • Ethereum “has 625,000 active addresses per day (90-day MA) – a number that continues to rise and is now comfortably seated at ATHs.”
  • There is “$ 65 billion now in #DeFi, with 16 different projects valued at more than $ 1 billion in TVL – a sign that Ethereum is an institutional grade financial technology.”
  • Ethereum “has an excellent supply of stable coins valued at $ 50 billion, with 500,000 unique senders exchanged daily and a value of $ 20 billion per day – a sign of an explosive adjustment in the product market.”
  • The monthly # DEX volume “is more than $ 60 billion, an increase of ~ 60x year over year – proof that #DeFi’s liquidity is already competing with #CeFi.”
  • More than $ 200,000 BTC ($ 11.2 billion) is “now represented in various forms on Etherem – a sign that ETH is becoming an economic vacuum for all assets, including Bitcoin.”
  • Sales of #NFTs on Ethereum โ€œhave now exceeded ~ USD 600 million, with 13 units sold for over USD 1 million each – a sign that new application categories are also emerging at ETH. @ 0xPolygon currently does ~ 1 million daily broadcasts and has incorporated numerous #DeFi blue-chip projects, including @AaveAave with> $ 2 billion in liquidity – belittling the “Ethereum can’t scale” narrative. “
  • Finally, โ€œIn less than three months (!) The EIP-1559 upgrade will be activated, which will likely result in hundreds of millions of dollars worth of ETH being burned every year. This is a massive catalyst for capturing the ETH value and its overall base investment case. “

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