Ethereum, the second largest cryptocurrency, has been actively forging a new path as it loses correlation with Bitcoin. This has resulted in the value of Ether limiting the intensity of the dumps witnessed in the Bitcoin market and recovering faster. With the start of the third quarter, analysts believed that Ethereum was in the top 5 options for alt and HODL-ers traders to watch out for.
Ethereum’s unrealized potential
According to the Coin Bureau market analysis, Ethereum had “a much higher probability of reaching upside potential” in the coming months. The Ethereum team has been working tirelessly to transform their existing proof-of-work system [PoW] in proof of participation [PoS]. Therefore, the changes that were taking place in the Ethereum ecosystem were increasing its potential as a future crypto.
The Coin Bureau Guy, as it is popularly known by the crypto industry, signaled the rollout of the Ethereum Enhancement Protocol [EIP] 1559 will be an important factor in this. You could turn Ether into a deflationary asset with enough activity, as a part of every transaction fee is burned. Following the clear logic of supply and demand, this could result in pushing the value of ETH north.
Analyst Elliot Wainman elaborated on this supply shock that could take place in the market. He stated,
“ETH is literally on fire. The transition to proof-of-stake will make this even more dramatic, and it’s important to realize that EIP-1559 isn’t even compatible with MetaMask yet, let alone all the major DApps. [aplicaciones descentralizadas]. As much as this has been a surprising supply shock so far, we still haven’t seen anything … “
Similarly, institutional investment in Ethereum was increasing along with the asset’s market shares for this group of investors. The digital asset is poised for an institution-driven rally in 2020 and could soon challenge Bitcoin’s actual market capitalization.
Meanwhile, the demand for an Ethereum The exchange-traded fund [ETF] it has been maintained, but the interesting thing is that the United States Securities and Exchange Commission has not yet rejected it, but has kept it pending. While the SEC has rejected multiple BTC ETF proposals, the ETH ETF review seemed like a welcome change.
Based on the development of its current network and its core activities, ETH could remain northbound.
This is a machine translation of our English version.
Your opinion is important to us!