Institutional demand for Ethereum up as much as that of Bitcoin – Coinbase

Spread the love


Coinbase’s ‘Year in Review’ 2020 study reported that there was a rising institutional market for Ether in the sense of increasing corporate interest in Bitcoin. According to Coinbase Institutional analysts, while exchange clients largely purchased Bitcoin last year, an increasing number also took up positions in Ethereum.

Source: Coinbase

Many of Coinbase‘s institutional clients think of Ethereum as a “decentralized computing network” that shares some of Bitcoin’s core assets. As far as Ether’s ownership is concerned, these clients see the “combination” of the asset’s capacity as a store of wealth and a digital utility that is necessary to power transactions on Ethereum.

Many claim that increasing interest in DeFi is the primary explanation behind the increase in Ether’s price. At the same time, David Grider at Fundstrat estimated that the booming DeFi economy will raise ETH by sevenfold.

Last year, Ethereum’s developer and investment activity in DeFi increased, as did Ethereum-based stablecoins, according to Coinbase’s analysis. However, the exchange noted problems with applications currently using Ethereum, including scaling friction, high gas charges when the network gets congested, and “complex smart contracts,” which may “grow to hold large crypto assets and thus attract bad players.”

RECOMMENDED READ:  A Blockchain-Based Platform We.Trade Lays Off Staff Due To Lack Of Funding

Coinbase’s clients claimed that Ethereum could become the main settlement network underpinning this emerging financial structure. Pursuant to the review:

In 2020 DeFi protocols built on Ethereum began to demonstrate clearly that the use cases for “programmable money” extend far beyond ICOs.

In addition, Coinbase is “closely” watching the growth of CBDCs and has acknowledged the “obvious” advantages of digital currencies. It also hoped that governments developing CBDC “will work to preserve individual freedoms and privacy.” The exchange urged the crypto group “who understands these systems” to lobby for the government to establish e-currency on the “top of open, public blockchain networks.”

 706 Interactions,  6 today

READ ALSO:
Cardano Price Movement Analysis for 4th March, 2021

Though a surge of the prices arose in March, corrections quickly began, dragging the price of cryptocurrencies down the charts. Read more

Bitcoin Cash, Elrond, Tron Price Movement Analysis for 4th March, 2021

Bitcoin Cash traded just above the support level at $507 as the bearish sentiment took hold. Elrond and Tron seemed Read more

Bitcoin Price Movement Analysis for 4th March, 2021

There were some reasons that led to Bitcoin falling down to $45,000 at press time. In reality, in the last Read more

Leave a Reply

Your email address will not be published. Required fields are marked *

Contact Us