Ethereum is reportedly deemed 'affordable' by a seasoned cryptocurrency analyst. Is it advisable to invest in ETH at present?
In the dynamic world of cryptocurrencies, Ethereum (ETH) has been making waves, outperforming Bitcoin (BTC) in every cycle and showing no signs of slowing down.
As the most well-known altcoin and the most trusted Web3 chain after Bitcoin, Ethereum continues to carve out its place in the digital economy. With a current market value of approximately $9,475 worth of Bitcoin, Ethereum's trajectory is set to hit new heights, according to analysts who expect it to reach $10,000 by 2026.
This prediction is backed by Ethereum's impressive performance over the past six months. While Bitcoin has returned approximately 32%, Ethereum has soared with a staggering 103.2% return. This growth is a testament to the robustness of Ethereum's infrastructure and its role as a foundation for decentralized finance and smart contracts.
The high purchasing activity by Ethereum-based companies and Ether ETFs indicates strong long-term confidence in Ethereum. In the past three months alone, a total of 4.9% of ETH has been bought from the markets, with Ethereum-based digital asset treasury (DAT) companies buying 2.6% of all ETH in supply since June. Spot Ethereum ETFs have also bought another 2.3% of ETH in the same period.
This strong institutional investment and growing demand from tokenized stablecoins suggest that Ethereum could experience a faster and more significant value increase than previously expected. Standard Chartered's global head of digital assets research, Geoffrey Kendrick, believes Ethereum and affiliated companies are "cheap" at the moment.
However, it's important to note that an altseason is not a guarantee. The analyst, who did not have positions in any of the securities mentioned at the time of publication, believes Ethereum remains cheap at current levels but cautions that the market would have to buy another 19.6% of Ethereum's circulating supply in the next 12 months for this prediction to come true.
The relative value of Ethereum compared to Bitcoin has historically been more aligned, with Ethereum outperforming Bitcoin during peak mania and having higher drawdowns during peak pessimism. This trend was evident during the 2017 altseason, when 1 ETH could buy 0.147 BTC, and in the period starting in late 2023, when Bitcoin diverged and outperformed Ethereum.
Nevertheless, Ethereum hosts hundreds of thousands of altcoins, stablecoins, and non-fungible tokens on its blockchain, further solidifying its position as a key player in the cryptocurrency market.
As always, readers are encouraged to view the article's Disclosure Policy for more information. With Ethereum's strong performance and promising future, it's an exciting time to keep an eye on this trailblazing cryptocurrency.
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