Ethereum-based investment products are becoming increasingly popular. Will ETH overtake BTC in five years, as an industry observer predicts?
London Hard Fork and NFTs are driving growth
Ethereum, the second-placed cryptocurrency by market capitalization, is spreading rapidly. According to a new report, there was massive growth in Ethereum-based investment products in August. As CryptoCompare writes, the assets under management (AUM) of all investment products have risen to $ 54.8 billion in the last 30 days. This corresponds to an increase of 57.3%. In addition, the average daily trading volume across all markets for on-exchange and OTC investment products increased by 46.6%.
Investments in ETH-based products rose to $ 13.8 billion, according to the report. At 72.8%, this corresponds to the highest growth rate among all crypto investment products. ETH-based products also account for a market share of 25.2% – this is also the highest value for crypto assets this year. The report:
“Ether and ETH-based products have gained significant momentum following the recent London hard fork of the protocol and the growth in the non-fungible token (NFT) markets. Bitcoin remains the dominant cryptocurrency for digital investment products with AUM of $ 38.1 billion (69.6% of the total AUM). “
According to CryptoCompare, corresponding Ethereum-based products have also driven the daily trading volume of the investment products market. That rose to $ 544 million in August – an increase of 46.6%. According to CryptoCompare, the largest increase since May compared to the previous month.
The increase was largely due to Ethereum tracking products, reports CryptoCompare. Right at the forefront: Grayscale’s ETHE Trust. Its average daily volume has increased by 105.9% – to now 193.3 million dollars. Grayscale’s Bitcoin Trust (GBTC) grew to $ 240 million (+ 17.4%). The volumes of other Bitcoin products, on the other hand, fell.
You can take a look at the CryptoCompare analysis here.
Top financial advisor: ETH could overtake BTC in five years
Ethereum is becoming increasingly popular – not only among large institutions, but also among small investors. Nigel Green, CEO of the independent financial consultancy deVere Group, refers to this. He says: Ethereum is already outperforming Bitcoin – and the trend will continue. In his estimation, Ethereum will overtake the flagship cryptocurrency “within five years”. Because, according to Green: ETH has greater benefits and is experiencing greater demand. This is reported by Cityam.com.
“Ether is up around 240 percent this year, while Bitcoin is up less than 38 percent. In fact, it outperformed all other benchmark assets in the first half of the year. “
In his opinion, two factors are responsible for this:
“Firstly, ether has a higher real potential for use,” says Green.
Ethereum is the most sought-after development platform for smart contracts, which highlights the value of the network not only as a platform for developers, but also as a global financial services company. As a second factor, Green mentions the enthusiasm of investors for ETH 2.0. This is not only an important impetus for Ethereum, but “for blockchain technology itself”.
Ultimately, these factors would cause the price of Ethereum to exceed Bitcoin’s price – “probably within five years,” Green said. The rise of Ethereum, he concluded, “seems unstoppable”.
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