The CEO of Pantera Capital believes that the application of the ETH blockchain and other fundamentals will increase its value until it surpasses Bitcoin
Ethereum blockchain application possible
and other fundamentals drive the value of the currency until it surpasses Bitcoin
, as pointed out by Dan Morehead, CEO of Pantera Capital.
Morehead claimed that ethereum’s lower environmental impact, potential applications and technological upgrades are factors that could make it outperform bitcoin as an investment, Reuters reported on Tuesday.
Additionally, at the Reuters Global Markets Forum on Monday, he explained that Ethereum is a newer asset than Bitcoin, so it could outperform the top cryptocurrencies.
Morehead also cited Ethereum Improvement Proposal (EIP) 1559, which he believes will help it trade more like a fixed asset.
Starting this Wednesday, EIP-1559 is expected to significantly reduce ethereum inflation by burning (burning) most of the fees paid for network transactions.
According to executives at Pantera Capital, we should expect “people who want to build wealth to do so in [ether], not bitcoin.”
Morehead also noted that when Ethereum finally completes its long-awaited proof-of-stake (PoS) transition, it will eliminate energy-intensive mining farms and be more environmentally friendly than Bitcoin. Ethereum’s use in decentralized finance (DeFi) applications will reportedly help support its price further.
Ethereum is currently trading at $2,518 after a 4.03% drop over the past 24 hours, according to CoinMarketCap.
That price is nearly 40% below the mid-May high of $4,168, but also more than 40.6% above the late July low of $1,787.