Bitwise CIO Calls Ethereum The ‘Microsoft Of Blockchains’, Can ETH Make A Comeback? – NewsBTC
Bitwise Chief Investment Officer Matt Hougan dubbed Ethereum (ETH) the ‘Microsoft of blockchains’, adding that none of the smart contract platform’s challenges are existential.
In a recent memo titled ‘A Contrarian Bet on Ethereum’, Hougan highlighted the tumbling ETH/BTC trading pair, indicating the weakening Ethereum price versus Bitcoin (BTC). At press time, the trading pair is exchanging hands at 0.038, its lowest level in three years.
Compared to some of the other leading digital currencies, ETH hasn’t had an eventful 2024. On a year-to-date basis, Bitcoin is up 38%, while the rival smart contract platform Solana (SOL) is up 31%. Binance’s BNB token has surged by 72% in the same period. However, ETH has remained flat, currently trading at $2,306.
Ethereum’s underperformance in terms of token price, according to Hougan, has made it ‘cool to hate Ethereum right now.’ Hougan noted several factors that might risk the Ethereum ecosystem, including the prospect of Democratic US presidential candidate Kamala Harris winning the election and continuing Biden administration’s suspicious attitude toward everything crypto.
In addition, the Bitwise CIO acknowledged the threats posed by competing blockchain projects, such as Solana, that offer higher throughput and lower transaction costs. He also admitted that ETH exchange-traded-funds (ETFs) haven’t had as much success as Bitcoin ETFs.
Although Hougan acknowledged the success of several Layer-2 solutions such as Base, Arbitrum, and Optimism, he stressed that their success has pulled so much transaction volume from Ethereum that its revenues have crashed to a four-year low. According to Hougan, these reasons are valid but ‘they miss the broader point.’
Hougan stressed that blockchain applications witnessing success in user adoption are all dominated by Ethereum, such as stablecoins and decentralized finance (DeFi). Over 50% of stablecoins are still issued on the ETH blockchain. Similarly, over 60% of DeFi assets are locked in various ETH-powered protocols.
In the memo, Hougan mentioned that institutional confidence in Ethereum remains high, as seen in asset manager BlackRock’s decision to develop a tokenized money market on Ethereum this year. Similarly, Nike chose Ethereum to launch its Web 3 gear platform called Swoosh.
He noted:
Ethereum has the most active developers, the most active users, and a market cap that is 5x bigger than its closest competitor. It’s the only programmable blockchain that has a modicum of regulatory support in the U.S., with a booming regulated futures market and a multi-billion-dollar ETF market.
To bolster his argument, Hougan compared Ethereum to software juggernaut Microsoft, saying that even though other tech companies like Google, Zoom, and Slack have offered useful services, Microsoft continues to be larger than all of them put together.
Concluding, Hougan said that Ethereum’s opportunities are enormous. As the world inches closer to the November US presidential elections, the market participants may reevaluate the second largest cryptocurrency by market cap. At press time, ETH trades at $2,306, commanding a total market cap of $277 billion.
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In a recent memo titled ‘A Contrarian Bet on Ethereum’, Hougan highlighted the tumbling ETH/BTC trading pair, indicating the weakening Ethereum price versus Bitcoin (BTC). At press time, the trading pair is exchanging hands at 0.038, its lowest level in three years.
Compared to some of the other leading digital currencies, ETH hasn’t had an eventful 2024. On a year-to-date basis, Bitcoin is up 38%, while the rival smart contract platform Solana (SOL) is up 31%. Binance’s BNB token has surged by 72% in the same period. However, ETH has remained flat, currently trading at $2,306.
Ethereum’s underperformance in terms of token price, according to Hougan, has made it ‘cool to hate Ethereum right now.’ Hougan noted several factors that might risk the Ethereum ecosystem, including the prospect of Democratic US presidential candidate Kamala Harris winning the election and continuing Biden administration’s suspicious attitude toward everything crypto.
In addition, the Bitwise CIO acknowledged the threats posed by competing blockchain projects, such as Solana, that offer higher throughput and lower transaction costs. He also admitted that ETH exchange-traded-funds (ETFs) haven’t had as much success as Bitcoin ETFs.
Although Hougan acknowledged the success of several Layer-2 solutions such as Base, Arbitrum, and Optimism, he stressed that their success has pulled so much transaction volume from Ethereum that its revenues have crashed to a four-year low. According to Hougan, these reasons are valid but ‘they miss the broader point.’
Hougan stressed that blockchain applications witnessing success in user adoption are all dominated by Ethereum, such as stablecoins and decentralized finance (DeFi). Over 50% of stablecoins are still issued on the ETH blockchain. Similarly, over 60% of DeFi assets are locked in various ETH-powered protocols.
In the memo, Hougan mentioned that institutional confidence in Ethereum remains high, as seen in asset manager BlackRock’s decision to develop a tokenized money market on Ethereum this year. Similarly, Nike chose Ethereum to launch its Web 3 gear platform called Swoosh.
He noted:
Ethereum has the most active developers, the most active users, and a market cap that is 5x bigger than its closest competitor. It’s the only programmable blockchain that has a modicum of regulatory support in the U.S., with a booming regulated futures market and a multi-billion-dollar ETF market.
To bolster his argument, Hougan compared Ethereum to software juggernaut Microsoft, saying that even though other tech companies like Google, Zoom, and Slack have offered useful services, Microsoft continues to be larger than all of them put together.
Concluding, Hougan said that Ethereum’s opportunities are enormous. As the world inches closer to the November US presidential elections, the market participants may reevaluate the second largest cryptocurrency by market cap. At press time, ETH trades at $2,306, commanding a total market cap of $277 billion.
* References, analysis, and trading strategies are provided by the third-party provider, Trading Central, and the point of view is based on the independent assessment and judgement of the analyst, without considering the investment objectives and financial situation of the investors.
Risk Warning: Trading may result in the loss of your entire capital. Trading OTC derivatives may not be suitable for everyone. Please consider our legal disclosure documents before using our services and ensure that you understand the risks involved. You do not own or have any interest in the underlying assets.
Mitrade does not issue advice, recommendations or opinion in relation to acquiring, holding or disposing of our products. All of our products are over-the-counter derivatives over global underlying assets. Mitrade provides execution only service, acting as principal at all times.
Mitrade is a brand jointly used by multiple companies and it operates through the following companies:
Mitrade International Ltd is the issuer of the financial products that are described or available on this website. Mitrade International Ltd is authorised and regulated by Mauritius Financial Services Commission (FSC) and the licence number is GB20025791. The registered office address is 6 St Denis Street, 1st Floor River Court, Port Louis 11328, Mauritius.
Mitrade Global Pty Ltd with ABN 90 149 011 361 holds an Australian Financial Services Licence (AFSL 398528).
Mitrade Holding is authorised and regulated by Cayman Islands Monetary Authority (CIMA) and the SIB licence number is 1612446.
The information on this site is not intended for residents of the United States, Canada, Japan, New Zealand or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation. Please note that English is the main language used in our services and is also the legally effective language in all of our terms and agreements. Versions in other langauges are only for reference. In the event of any discrepancy between the English version and the other versions, the English version shall prevail.
Secured by SSL. © Mitrade Copyright, All rights reserved.
source
This article was autogenerated from a news feed from CDO TIMES selected high quality news and research sources. There was no editorial review conducted beyond that by CDO TIMES staff. Need help with any of the topics in our articles? Schedule your free CDO TIMES Tech Navigator call today to stay ahead of the curve and gain insider advantages to propel your business!
