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Since Bitcoin’s surge last year, high-level financial organisations have prioritised the cryptocurrency’s value. However, although corporations such as Microstrategy and Tesla have invested heavily in the top digital asset, Ethereum is still lagging far behind.
Companies like Coinbase, on the other hand, may be changing that narrative, with the NASDAQ-listed cryptocurrency exchange recently announcing plans to invest millions in purchasing Ether and other altcoins.
Even still, even corporations with no crypto-allegiances aren’t rushing to add ETH to their balance sheets. According to Ryan Selkis, this scenario may soon alter.
During a recent podcast, the CEO of Messari opined that Ethereum will soon become popular with institutions. Why? Well, because there is a half-life to new crypto-assets. He explained,
“The first asset that almost all new buyers are going to accumulate for their treasury or as part of an investment strategy is probably going to be Bitcoin and then you know ether is going to be number two.”
According to the executive, it also boils down to their value propositions, which include digital gold vs. token interest in the “financial Internet.” In that regard, “Ethereum has real transaction volumes, real applications running on top of it,” he noted.
Because both networks are at the top of their respective classes, there may come a moment when their market capitalizations are equal. Selkis, noting that such a scenario would be intriguing, added,
“You’ll have Bitcoin and Ethereum maximalists at each other’s throat and arguing in perpetuity over basically a false contract and in a false debate because it’s two completely different things that happen to be the same size.”
It would, however, make Ethereum “a much better trade,” he noted.
To many proponents, Ethereum flipping Bitcoin, the “flippening,” is just a matter of time. However, according to Selkis, the same shouldn’t be assessed via comparisons of market cap and price since they are “most irrelevant metrics.”
“Even on Coinbase, we saw more trading volume on Ethereum last quarter than on Bitcoin and one could argue obviously with transaction volume or any other number of metrics that Ethereum is already more popular than Bitcoin.”
Ethereum is presently the most popular blockchain in the world, thanks to the thousands of applications and platforms that have been created on top of it. Because payments on the network are made using the network’s native coin, ETH transaction volume has naturally been larger than BTC. The latter is actually prefered as a value store by the majority of users.
Nonetheless, the analyst was not entirely complimentary of Ethereum. While ETH 2.0 appears to be on the horizon, Selkis feels the switch to Proof-of-Stake may still suffer “execution risk.” He continued,
“I don’t think that Ethereum is kind of the definitive winner in settling decentralized finance transactions or settling any type of value transfers, whether it’s NFTs or currencies.”