Ethereum has seen extreme growth over recent weeks. According to CryptoSlate data, the cryptocurrency is up by 68.5 percent in the past month, outpacing effectively all other multi-billion-dollar assets in existence.
With the recent move higher, ETH now has a market capitalization of $44 billion, making the cryptocurrency the size of a medium-to-large corporation.
Recent events in the blockchain industry, though, have made some think that Ethereum is on its way to a $1 trillion valuation.
One investor in the space, in fact, recently went as far as to say that there will be a “race” between Bitcoin and Ethereum to reach a market capitalization of $1 trillion.
Ethereum and Bitcoin could “race” to $1 trillion valuation
On Aug. 9, Placeholder Capital’s Chris Burniske rhetorically asked Crypto Twitter: “Ready to watch $BTC & $ETH race each other to a trillion in value?” In saying so, the prominent cryptocurrency investor is implying that the two blockchains will approach that milestone around the same time.
Ready to watch $BTC & $ETH race each other to a trillion in value? https://t.co/BAffYQMPSF
— Chris Burniske (@cburniske) August 9, 2020
For context, Bitcoin needs to rally approximately 400 percent from its current price of $11,800 to reach that $1 trillion milestone. Ethereum, on the other hand, needs to rally approximately 2,100 percent to reach that same level.
This isn’t the first time Burniske has mentioned this sentiment.
In June, the analyst, formerly of Bitcoin-friendly investor ARK Invest, noted that if Bitcoin crosses above $50,000, he thinks there is a likelihood “ETH [is] over $7,500.” At $7,500, Ethereum would be just shy of the $1 trillion market capitalization that he believes may eventually be reached.
Burniske attributed his sentiment to his thoughts on how a retail audience, similar to the audience that invested in Bitcoin in 2016-2017, will address and invest in Ethereum:
“Meanwhile, to the mainstream $ETH will be the new kid on the block — expect a frenzy to go with that realization. Given $ETH’s outperformance of $BTC over its lifetime (chart below again), not to mention smaller network value and strong on-chain economies, I see every reason for $ETHBTC to surpass ATHs.”
$1 trillion is possible, say other fund managers
Other fund managers agree with Burniske’s sentiment that Ethereum’s market capitalization could hit $1 trillion in the near future.
As reported by CryptoSlate previously, Joseph Todaro, managing partner of Blocktown Capital, said that decentralized finance will do more to catalyze a bull run in Ethereum’s price than ICOs ever did:
“In 2017 ICOs aided in moving ETH beyond $100 billion marketcap. In this next cycle, Defi will likely help push ETH to $1 trillion marketcap.”
In 2017 ICOs aided in moving ETH beyond $100 billion marketcap
In this next cycle, Defi will likely help push ETH to $1 trillion marketcap
— Joseph Todaro (@JosephTodaro_) June 16, 2020
This has been echoed to a T by Ryan Sean Adams of Mythos Capital, who published an article by DeFi analyst Lucas Campbell on how Ethereum could hit a $1 trillion market capitalization due to DeFi trends.
“The driving takeaway here is that in order for a decentralized smart contract platform with a native, permissionless, trustless asset to successfully provide the world with a permissionless, trustless economy, it will require its native asset to supply trillions in economic bandwidth.”
The post Top VC says that Ethereum and Bitcoin may race each other to $1 trillion valuation appeared first on CryptoSlate.
Leave a Reply