Bid adieu, bitcoin. Ether is back and ready to strike. Bitcoin has soared to an all-time high of nearly $70,000, setting a new record. Nevertheless, ethereum, which is now the world’s second most valued cryptocurrency. It has piqued the interest of investors even more.
Ethereum, commonly known as ether for short, is also trading at all-time highs. It’s now hanging around $4,850, having risen more than 560 percent this year. Compared to bitcoin’s “mere” 135 percent gain during the same time period. Bitcoin and cryptocurrency investors are counting on the fact that ether will continue to be utilized. As the backbone for even bid adieu more non-fungible tokens, or NFTs, and for so-called smart contracts.
This wave of decentralized financing (DeFi) is expected to grow increasingly popular. In the financial industry, according to experts. That might be good news for ether, as well as for solana. Another cryptocurrency that uses blockchain technology, which is bid adieu commonly utilized in decentralized financial applications.
Ether, which now has a total market capitalization of over $575 billion for all of its bid adieu coins in circulation. It has also closed the gap between itself and bitcoin, which is currently valued. At approximately $1.3 trillion. Approximately two-thirds of the nearly $3 trillion cryptocurrency market. It is currently accounted for by the two cryptocurrencies.
When asked about the decline in bitcoin’s market share since 2017, Michael Pinsker. The founder and president of wealth management technology firm Docupace. He said, “We’re seeing a shift in the industry where bitcoin has gone from being 75 percent. Of the overall cryptocurrency market cap to about 50 percent.” This percentage should be reduced even lower, according to the author.
Investing in Ether Grows
More and more investors are flocking to ether. Ether has also grown in popularity among traders on the cryptocurrency brokerage Coinbase. It is according to the company.
The cryptocurrency exchange Coinbase reported after the closing bell on Tuesday. That ether accounted for 22 percent of its third-quarter trading volume, compared to bitcoin. Which accounted for 19 percent of the total. This is the second consecutive quarter in which ether trading outperformed bitcoin trading.
According to Jared Madfes, a partner in Tribe Capital, there might even be a “flippening”. In the next decade, in which the value of ethereum surpasses that of bitcoin.
The durability of inflation is beneficial to ether and other cryptocurrencies, as well as traditional currencies. In a time when interest rates stay low and the Federal Reserve and other central banks. Continue to pump money into the economy, investors have begun to understand. The significance of digital currencies, which are increasing in value.
“Inflation is not going away anytime soon. The production of money by central banks is a gulf that cannot be bridged “Dylan LeClair. The head of market research at Bitcoin Magazine, shared his thoughts.
The rise of bitcoin exchange-traded funds (ETFs) may also be good news for ethereum. As analysts expect that similar ether ETFs will be launched in the near future. In turn, this will make it even easier for common people. As well as large money management businesses to invest in cryptocurrencies.
As a result, “institutions want more exposure to cryptocurrencies. So they believe that ether ETFs will introduced,” says Tribe Capital’s David Cohen.
AVOID MEME COINS, urge experts
Experts advise sticking to ether and bitcoin and staying away from meme coins. Even so, when it comes to purchasing cryptocurrency. Investors must use caution. Not every one of them has a practical use.
There are currently a slew of so-called meme coins available, such dogecoin and shiba inu. That have risen in value as a result of social media hype (including that of Tesla (TSLA) CEO Elon Musk). And other, more ridiculous, factors.
According to Eric Satz, CEO and founder of Alto, an investment firm that offer. A crypto IRA, “Crypto currently is quite similar to the 1990s and the internet.” he added. He’s alluding to the slew of e-commerce companies that went public and saw their stock prices skyrocket at the time. However, only one true leader, Amazon (AMZN), has survived to the present day.
“There are a plethora of cryptocurrencies available for purchase. However, there will be a great deal of roadkill. Investors must exercise prudence in the current environment “Satz went on to say that its investors. Have a cryptocurrency portfolio that primarily comprised of bitcoin, ether, and solana.
Ray Youssef, the co-founder and CEO of Paxful, a cryptocurrency trading platform. Is even more cautious in his assessment of the market. He advised crypto investors not to Bid adieu keep dogecoin, shiba inu, or any of the other more speculative cryptos. Because large corrections expected in the near future.
In that aspect, it’s similar to the stock market: Stocks in Apple (AAPL), Microsoft (MSFT), or another top firm in the S&P 500 are one thing. But owning stock in a company like Google (GOOG) is quite another. Meme stocks, on the other hand, are a different story.