The second-largest cryptocurrency by market cap, Ethereum [ETH], might see further gains towards $10k within this year after reaching a new all-time high around $2,780 USD earlier today on Thursday – a roughly threefold increase forecasted by FundStrat, a marketing research firm.
ETH is up about 40% for the month so far versus a 5% decline for Bitcoin [BTC]. “We’re maintaining our overweight Ethereum vs. bitcoin recommendation from April last year,” wrote FundStrat during a research note outlined earlier on Thursday.
“Ethereum’s market cap has risen to ~30% of bitcoin’s over recent weeks. Within the last market cycle, Ethereum broke this level and [had] as high as 80% of bitcoin’s value.”
“The cryptocurrency narrative is shifting from bitcoin to Ethereum and other segments like DeFi as well as Web 3.0 apps.”
FundStrat is optimistic about ETH as new financial apps are being developed on the Ethereum network, which has grown significantly in scale over the last year.
“These apps are generating ~3x fees for the Ethereum network vs. Bitcoin, which trades at ~3x the market cap.”
“In cryptocurrency accounting terms, this is often an equivalent as a corporation using revenue, less operating costs, and earning a profit that’s wont to repurchase stock. this suggests the network would become profitable like a company once ETH supply reduction from burned fees outpaces inflation,” outlined FundStrat.
FundStrat also expects bitcoin to succeed in $100k this year and therefore the total cryptocurrency market cap to succeed is $5 trillion.