Key Takeaways
- The bank's experts are unbelievably optimistic about ETH and anticipate that it would gain on BTC."
- Aside from sharding, Standard Chartered discussed the overall supply of ether.
- Daily transactions for Ethereum recently surpassed Bitcoin, indicating a future flip.
An "Ethereum Investor Guide," report of the financial services giant presents its value proposition when comparing it with the bitcoin network. According to researchers Geoff Kendrick, Christopher Graham, and Melissa Chan, "We see Ethereum' value around USD 26,000 to 35,000." In terms of its structure.
However, they also acknowledge that Ethereum is not expected to achieve the price before Bitcoin starts to trade "at the top of our range," for $175,000.
That stated, the experts finally anticipate that ETH will catch up with Bitcoin's market value. They predict this based on measures to replace each network by the industry market caps:
"We compare the value of ETH to the value of worldwide credit card businesses by comparing ETH to the value of BTC. On this basis, an ETH potential value of USD 35 000 (current level 10X) is estimated."
The study also includes a "far broader range of Ethereum use cases." ETH is highlighted for its support of Smart Contracts, DAOs, NFTs, Stablecions, DeFi,, etc., whereas Bitcoin is seen as a Digital Gold. Combined with the forthcoming ETH 2.0's enhanced functionality, scalability, and remoteness, Standard Chartered considers Ethereum "a more affordable medium-run purchase than BTC."
Related post: Ethereum Outperforming Bitcoin
Which is riskier: ETH or BTC?
The bank also considers investing in the network a bigger gamble overall despite its favorability for Ethereum.
"We believe that present prices reflect ETH's greater complexity (against BTC) and ETH's developments' unpredictability. This means that although the potential profits for ETH may be larger than for BTC, the risk is also higher."
Indeed, given the recent price changes of ETH and BTC, such concerns are well-founded. Although Ethereum's gains had been much higher than those of Bitcoin over the previous two weeks, they have also fallen. After yesterday's market-wide collapse, while Bitcoin fell by 15 percent, Ethereum fell by more than 20 percent at one point. A sharp increase followed this price decrease in network transaction costs.
What do you think about the analysts' predictions?
