Aug 3 (Reuters) – The Ethereum platform’s potential purposes, decrease environmental affect and technical upgrades are doubtless to assist the ether token proceed to outperform bitcoin, Pantera Capital CEO Dan Morehead stated.
As a more moderen token, ether has additional to run than bitcoin, Morehead instructed the Reuters International Markets Discussion board on Monday, including that the most recent Ethereum Enchancment Proposal (EIP) 1559 improve will assist it commerce extra like a set asset.
“You may see a transition of people that need to retailer wealth, doing it in (ether) reasonably than simply bitcoin,” he added.
Scheduled to go stay Wednesday, EIP 1559 considerably adjustments how transactions are processed on the Ethereum blockchain in addition to reduces provide of the ether token. read more
Migration to the upgraded “Ethereum 2.0” will cut back ether’s mining power use in contrast with bitcoin’s giant carbon footprint, Morehead stated.
The blockchain’s use in decentralised finance (DeFi) purposes may even help costs, he added.
Ether , the world’s second-largest cryptocurrency, has greater than doubled its value in 2021 to its Monday shut of $2,608, in contrast with bitcoin’s rise of 46% to $39,166.
Ether’s market capitalisation was round $306 billion on Monday, lower than half of bitcoin’s $737 billion, in keeping with tracker CoinGecko.com.
Morehead sees bitcoin ending 2021 between $80,000 and $90,000, and rising above $120,000 inside a yr. Elevated mainstream adoption might push it as excessive as $700,000 within the subsequent decade, he stated.
Regardless of current volatility that left bitcoin 40% under its April all-time excessive of $64,895, Morehead stated Pantera Capital’s funds have attracted institutional traders who’re much less “momentum”-oriented than retail traders, and see present costs as a shopping for alternative.
He additionally sees elevated regulatory scrutiny, resembling a world crackdown on cryptocurrency alternate Binance, as a “transition” part.
Pantera, which manages $2.8 billion in blockchain-related belongings, has invested in a number of crypto exchanges together with Bitstamp, Coinbase, (COIN.O), and regional exchanges resembling Mexico-based Bitso.
(This interview was performed within the Reuters International Markets Discussion board, a chat room hosted on the Refinitiv Messenger platform. Be part of GMF: https://refini.tv/33uoFoQ)
Reporting by Lisa Pauline Mattackal and Aaron Saldanha in Bengaluru; Modifying by Divya Chowdhury and Jacqueline Wong
Our Requirements: The Thomson Reuters Trust Principles.