As bitcoin continues to tank hard, Ethereum just keeps picking up steam. There are many financial analysts out there that seem to think the world’s second largest cryptocurrency by market cap will soon rise to the occasion and potentially overtake the entire space.
Ethereum Is Moving Up the Ladder
Bitcoin has fallen – once again – to about $32,000 per unit, meaning it is now trading for half its mid-April value. The currency has undergone one of its biggest corrections in history, and now financial firms like Goldman Sachs are stating that Ethereum is likely to jump into the number one spot in the coming years. In a recent report, the company stated:
Currently, [it] looks like the cryptocurrency with the highest real use potential is Ethereum. The platform on which it is the native digital currency is the most popular development platform for smart contract applications.
While bitcoin still has the larger price of the two, Ethereum has gained serious momentum with developers, many of whom appreciate Ethereum-based technology for the creation of decentralized applications and new cryptocurrencies. Ethereum boasts smart contract capabilities, which makes it one of the most attractive platforms for building new projects.
Crypto payment network Zeb Pay was also quick to ring in regarding Ethereum’s present rise to power. In a statement, the company explained:
Analysts believe that Ethereum could rise sharply against bitcoin over the next few weeks with the technical advancements with EIP-1559, along with optimistic fundamentals. The depletion of ether on exchanges globally will limit its circulation and result in scarcity which may drive prices up. ETH had taken support around $1,720 multiple times in the past. This time too it did the same and started moving upwards forming a ‘higher top higher bottom’ pattern. The asset has surged by almost 39 percent from its recent lows and made the weekly high of $2,386.5. ETH faced resistance at these levels and witnessed some profit booking. Currently, the asset is consolidating around $2,350 to $2,150 and if the price sustains the support levels, we can expect another rally up to the next resistance level, which is at $2,650.
Gold Still King?
In any case, despite the currency’s present prowess, Goldman Sachs does not expect Ethereum or bitcoin to ever surpass the status of gold. The financial firm clearly states that the precious metal is likely to remain the number one asset for investors, claiming:
Gold is competing with crypto to the same extent it is competing with other risky assets such as equities and cyclical commodities. We view gold as a defensive inflation hedge and crypto as a risk-on inflation hedge.
Not long ago, it was revealed that the crypto space is privy to many more Ethereum addresses than bitcoin addresses, suggesting many investors have had a change of heart and are not viewing BTC in the same light.