Experts predict that this wave of decentralized financing (DeFi) will become more widespread in the banking sector. That could be good news for ether, as well as solana, another crypto that has blockchain technology used in DeFi applications.
Ether, which now has a total value of about $ 575 billion for all of its coins in circulation, has also narrowed the market value gap with bitcoin, which is worth about $ 1.3 trillion. The two cryptocurrencies now make up nearly two-thirds of the nearly $ 3 trillion market for cryptocurrency.
“We are seeing a shift in the industry, where bitcoin went from being 75 percent of the total market value of cryptocurrency to about 50 percent,” said Michael Pinsker, founder and president of technology company Docupace, which is wealth management, about the decline in bitcoin’s market share. since 2017. “That percentage should fall even more.”
More investors are flocking to ether
In its latest earnings report after the closing bell on Tuesday, Coinbase said 22% of its third-quarter trading volume was for ether, compared to 19% for bitcoin. It’s the second in a row quarter where ether trading was higher than bitcoin.
There may even be a so-called “flipping” in the next decade where the value of ethereum ends up topping bitcoin, said Jared Madfes, a partner at Tribe Capital.
“Inflation is not disappearing. Central banks printing money are a divide that cannot be crossed,” said Dylan LeClair, head of market research at Bitcoin Magazine.
The rise of bitcoin ETFs may also be good news for ethereum, as experts predict that similar ether ETFs may be launched soon. This will make it even easier for average investors and large money management companies to buy into the crypto.
“Institutions want more exposure to cryptocurrencies, so I expect there will be ether ETFs,” Tribe Capital’s Madfes said.
Experts say, stick to ether and bitcoin and avoid meme coins
Still, investors need to be careful when buying cryptocurrencies. Not all of them have practical applications.
“There are a whole lot of cryptocurrencies out there. But there will be a lot of roadkill. Investors need to proceed with caution,” Satz said, adding that he recommends investors have a crypto portfolio consisting mainly of bitcoin, ether and solana.
Ray Youssef, co-founder and CEO of Paxful, a crypto-trading platform, has an even more cautious stance. Crypto investors should not hold dogecoin, shiba inu or any of the other more speculative cryptos, he said, because major corrections await ahead.
“Ether and bitcoin versus meme coins are like the difference between blue chips and penny stocks you get a call about from a guy in a boiler room,” Youssef said.