Coin Bureau Explains How Ethereum Could Grow Bigger Than Bitcoin
Coin Bureau show host and a widely-followed crypto trader, explains why he thinks Ethereum (ETH) could reach an even larger market cap than Bitcoin (BTC).
In a recent video, the pseudonymous trader known as ‘Guy’ shares his 1.17 million YouTube subscribers that the decentralized finance (DeFi) has potential to attract a massive number of investors looking for yields that are way more attractive to traditional financial instruments.
Because DeFi is largely dependent on Ethereum, the possible increase in adoption of decentralized finance protocols could push ETH to become the biggest crypto on the market by market cap, according to the trader. The trigger could be Ethereum and other smart contract platforms going through their expected upgrades to become cheaper and more efficient, says Guy.
“Once these upgrades go through, the demand for these smart contract cryptocurrencies is going to go through the roof for one reason: DeFi. The yields you can find on even the most vanilla DeFi protocols are much higher than anything any centralized financial intuition can currently offer you. Investors big and small are feeling the squeeze from low-interest rates and high inflation, which basically made any yield below 5-7% a break-even number. This is why institutional investors have been piling into DeFi…
Whereas Bitcoin is still recovering from its hash rate collapse, Ethereum’s has been comparably unaffected and its decentralized financial ecosystem has likewise remained stable. I’m sure that institutions also like that they can have a say in Ethereum 2.0 by staking ETH, which is something that is now available at a bank in Switzerland.”
According to the trader, Ethereum has a good chance of becoming the number one crypto asset, and one specific catalyst could make that reality:
“Because of these and other factors such as general user adoption, I think it’s very possible that we’ll see Ethereum flip Bitcoin by market cap when the next bull run comes around. This is essentially guaranteed if Ethereum sees an [exchange-traded fund] before Bitcoin, and it looks like this might just happen.”
Ethereum exchange-traded funds (ETFs) have been filed for registration with the US Securities and Exchange Commission (SEC) but none have been publicly approved. The host of Coin Bureau posits that there’s a chance one of the filings has already been approved, though no announcement of an approval has been made.
“Now, perhaps this is just wishful thinking, but as far as I’m concerned it’s not a question of ‘if’ but ‘when’.”
