Aug 3 (Reuters) – The Ethereum platform’s potential functions, decrease environmental influence and technical upgrades are seemingly to assist the ether token proceed to outperform bitcoin, Pantera Capital CEO Dan Morehead stated.
As a more moderen token, ether has additional to run than bitcoin, Morehead advised the Reuters International Markets Discussion board on Monday, including that the most recent Ethereum Enchancment Proposal (EIP) 1559 improve will assist it commerce extra like a hard and fast asset.
“You will see a transition of people that wish to retailer wealth, doing it in (ether) moderately than simply bitcoin,” he added.
Scheduled to go dwell Wednesday, EIP 1559 considerably modifications how transactions are processed on the Ethereum blockchain in addition to reduces provide of the ether token. read more
Migration to the upgraded “Ethereum 2.0” will cut back ether’s mining vitality use in contrast with bitcoin’s massive carbon footprint, Morehead stated.
The blockchain’s use in decentralised finance (DeFi) functions will even help costs, he added.
Ether , the world’s second-largest cryptocurrency, has greater than doubled its value in 2021 to its Monday shut of $2,608, in contrast with bitcoin’s rise of 46% to $39,166.
Ether’s market capitalisation was round $306 billion on Monday, lower than half of bitcoin’s $737 billion, based on tracker CoinGecko.com.
Morehead sees bitcoin ending 2021 between $80,000 and $90,000, and rising above $120,000 inside a yr. Elevated mainstream adoption may push it as excessive as $700,000 within the subsequent decade, he stated.
Regardless of latest volatility that left bitcoin 40% under its April all-time excessive of $64,895, Morehead stated Pantera Capital’s funds have attracted institutional traders who’re much less “momentum”-oriented than retail traders, and see present costs as a shopping for alternative.
He additionally sees elevated regulatory scrutiny, similar to a worldwide crackdown on cryptocurrency change Binance, as a “transition” part.
Pantera, which manages $2.8 billion in blockchain-related property, has invested in a number of crypto exchanges together with Bitstamp, Coinbase, (COIN.O), and regional exchanges similar to Mexico-based Bitso.
(This interview was performed within the Reuters International Markets Discussion board, a chat room hosted on the Refinitiv Messenger platform. Be part of GMF: https://refini.tv/33uoFoQ)
Reporting by Lisa Pauline Mattackal and Aaron Saldanha in Bengaluru; Enhancing by Divya Chowdhury and Jacqueline Wong
Our Requirements: The Thomson Reuters Trust Principles.