Ether continues to consolidate as market turbulence dips
ETH has only lost 2% of its value over the last 14 days
- Analysts believe that ETH has the potential to scale up to a price point of AU $13,000 within the next 12 months.
- Ether has been outperforming Bitcoin by over 30% since May
- The Ethereum network, on average, settled AU $32.5 billion worth of transactions per day all through last month
Barring a 24-hour time window between May 23-24, the value of Ether, the world's second largest cryptocurrency by total market capitalization, has continued to hover around the AU $3,250 mark. Infact, over the past week, ETH has dipped by a mere 1%, thereby suggesting that the ongoing bear market may finally be coming to a close. At press time, the premier altcoin is trading at AU $3,500.
To gain a better idea of where Ether might be headed in the near future, Finder spoke with Todd Crossland, CEO of cryptocurrency exchange CoinZoom. He pointed out that with each passing day, we are continuing to see an increasing level of ETH adoption across the global digital currency landscape, adding:
"The only thing holding Ethereum back right now is the painfully expensive proposition of using ETH in DeFi, NFT's, or any other application. With Ethereum's upcoming update to proof of "stake", instead of proof of "work", Ethereum has the potential to reach US $10,000 (AU $13,000) in the next year."
What lies ahead?
Since the beginning of May 2021, it is worth noting that Ether has been able to outperform BTC in a big way, gaining 32% on the flagship crypto. That being said, derivatives data seems to indicate that professional traders are not bullish on the top altcoin even though legacy institutions such as JPMorgan Chase and Goldman Sachs have recently released reports indicating a bullish outlook in regard to the crypto market as a whole.
In addition to this, it is also worth noting that the "Crypto Fear and Greed Index" — a metric used to gauge public interest and sentiment regarding Bitcoin and other top cryptos — dipped to its lowest levels in more than 15 months recently. Not only that, even as fears of volatility continue to run amuck, global trading giant Guggenheim Investments revealed that it had filed for a new fund that may seek exposure to Bitcoin with the United States Securities and Exchange Commission (SEC).
What lies ahead?
As the market continues to consolidate and recover, Ethereum has been continuing to grow, with the project recently overtaking Bitcoin in terms of miner revenue and network value transacted. On the subject, a report from Goldman Sachs revealed that in the coming future, ETH has a good chance of surpassing BTC as a "dominant store of value."
In this regard, one can see that over the course of May, Ether miner revenue (touted to be around US $76 million per day) outpaced that of Bitcoin's return ratio of US $45 million. Lastly, the Ethereum network's daily transaction load has been growing at a rapid rate, with the ecosystem currently handling a whopping $25 billion (AU $32.5 billion) worth of transactions per day, a figure that is 85% higher than that of Bitcoin's.
Disclosure: The author owns a range of cryptocurrencies at the time of writing