Ether, which is the second-biggest cryptocurrency in terms of market capitalisation, could reach $10K this year after it surpassed $2000 last Thursday, which means that it could multiply by three times.
When compared to bitcoin which has seen a decline of 5% this month, Ether is up 40% in the same period.
FundStrat said, “We’re maintaining our overweight Ethereum vs. bitcoin recommendation from April 2020. Ethereum’s market cap has risen to 30% of bitcoins over recent weeks. During the last market cycle, Ethereum broke this level and had as high as 80% of bitcoin’s value. The crypto narrative is shifting from bitcoin to Ethereum and other segments like DeFi and Web 3.0 apps.”
Fresh applications for finance are being created on the Ethereum platform. FundStrat continued by saying, “These applications are generating three times the fees for the Ethereum network vs. Bitcoin, which trades at three times the market cap. In crypto accounting terms, this is the same as a company using revenue, less operating costs and earning profit that is used to buy back stock. This means the network would become profitable like a company once ETH supply reduction from burned fees outpaces inflation.”
Bitcoin is supposed to make it to $100K by the end of 2021, reaching a total crypto market cap of $5 trillion.