A fresh report from Goldman Sachs has been released on the internet. The researchers made an eye-opening discovery in it. Ethereum, per the bank, will surpass Bitcoin as the top store of wealth. Crypto: A Fresh Asset Class? is the topic of the 41-page study.
Parts of it were released on Twitter by Santiago Roel Santos, General Partner of ParaFi Capital. The shortage of Bitcoin is its best argument as a store of value. It will remain to be a good store of wealth due to the restricted supply and widespread usage. However, the second-biggest cryptocurrency has grown in size and now boasts the world’s biggest crypto network.
Most decentralized finance (DeFi) applications are being built on the Ethereum network, and most non-fungible tokens (NFTs) issues today are purchased using Ether. The greater number of transactions in Ether versus Bitcoin reflects this dominance.
The analysts anticipate that, in the long term, Ethereum will have a bigger need than Bitcoin because to all of the developments surrounding it. The effectiveness of a store of value is driven by demand, not shortage, according to the experts. Lark Davis, one of the most well-known crypto pioneers, has made an interesting forecast.
The Ethereum ecosystem’s rapid expansion over the last several years sent out shockwaves throughout the industry. Its popularity, nevertheless, has been its downfall, since it has resulted in exorbitant financing costs and scalability concerns. The introduction of Etheruem 2.0 will put an end to this, leaving Ethereum with little chance of flipping Bitcoin.
With respect to pricing, Ethereum has succeeded to distance itself from altcoins by establishing a market cap gap of over double that of the third-placed Tether (USDT). This is true when comparing the market capitalizations of Bitcoin and Ethereum. Nevertheless, Ethereum has achieved this despite scaling issues and hefty gas prices, resulting in it losing market share to other blockchains including Binance Smart Chain.
For the past few weeks, the two digital assets are also underperforming. Both have fallen short of their all-time peak established earlier this year. Ethereum has been trading in the $2,500 range, down more than 30% from its all-time high of $4,300.
“A major argument in favor of bitcoin as a SoV is its limited supply. But demand, not scarcity, drives the success of stores of value” pic.twitter.com/G4zgZAhj30
— SantΞago R Santos (@santiagoroel) May 22, 2021
