Crypto analyst Mike McGlone is predicting that Ethereum, at some point, will likely eclipse bitcoin and become the number one digital currency by market cap.
Mike McGlone Thinks Highly of Ethereum
As a senior commodity strategist for Bloomberg, McGlone has been following cryptocurrencies for a long time just like the rest of us. In a new report, he details why Ethereum – still only the second largest digital currency in the world at the time of writing – could potentially earn the top spot within the virtual ladder. He explained:
Emphasizing the benefits of diversification, notably in an asset class as nascent as cryptos, the trend that appears enduring is Ethereum gaining market share versus bitcoin.
In recent days, bitcoin has taken another hard crash. The world’s primary form of digital money has tanked and fallen to $32,000 per unit. This is about $4,000 or $5,000 less than where it stood early in the week. The asset has continued to travel south over the past month or so and has officially lost 50 percent of its value since mid-April when it was trading for a new all-time high of approximately $64K.
For bitcoin to drop this much in such a short period is not putting it in the best light, and thus many traders and analysts have since turned to other large competing digital assets as a means of staying in the crypto world while also recuperating some of their BTC losses. McGlone has continued his push of Ethereum by stating the following:
Both [bitcoin and Ethereum] have bullish underpinnings, but the foundation and use case of [Ethereum] is a strong complement to the more macro store-of-value attributes of [bitcoin].
ETH is among the most popular cryptocurrencies given its technical abilities with smart contracts. It has become widely sought after by crypto developers who are looking to establish new coins, decentralized applications (dapps) and non-fungible tokens (NFTs).
McGlone comments that while Ethereum is currently facing opposition from other coins that boast the same technology, the asset is still the go-to network for many upcoming projects, and that it is not likely to lose this status anytime soon. He says:
Ethereum faces competition from other crypto asset and smart contract platforms, but the number two crypto has won the adoption race as the go-to for digitalization of money and finance.
More Money Coming In
In addition, investors have continually thrown their money into the Ethereum space, and products such as the Grayscale Ethereum Trust have seen their numbers explode in just this week alone. ETH has also proven diverse in that it can be purchased outright or offered as a security through various platforms for less risk. Asset investing company Coin Shares explained in a recent report:
Ethereum continues to see inflows into investment products totaling $33 million [over the last week], remaining the altcoin of choice for investors.