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Ether Could Hit $10K, FundStrat Says, Touting Network Value Versus Bitcoin's
"The crypto narrative is shifting from bitcoin to ethereum," wrote FundStrat, which placed a $10K price target on ETH for this year.
Updated Sep 14, 2021, 12:49 p.m. Published Apr 30, 2021, 4:17 p.m.
Ether (ETH), the second-largest cryptocurrency by market cap, could see further gains towards $10,000 this year after reaching a new all-time high around $2,780 on Thursday – a roughly threefold increase forecasted by FundStrat, a market research firm.
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ETH is up about 40% for the month to date versus a 5% decline for bitcoin (BTC). “We’re maintaining our overweight ethereum vs. bitcoin recommendation from April 2020,” wrote FundStrat in a research note published on Thursday.
- “Ethereum’s market cap has risen to ~30% of bitcoin’s over recent weeks. During the last market cycle, ethereum broke this level and [had] as high as 80% of bitcoin’s value.”
- “The crypto narrative is shifting from bitcoin to ethereum and other segments like DeFi (decentralized finance) and Web 3.0 apps.”
- FundStrat is bullish on ETH as new financial applications are being developed on the Ethereum network, which has grown significantly in scale over the last year.
- “These applications are generating ~3x fees for the Ethereum network vs. Bitcoin, which trades at ~3x the market cap.”
- “In crypto accounting terms, this is the same as a company using revenue, less operating costs and earning profit that is used to buy back stock. This means the network would become profitable like a company once ETH supply reduction from burned fees outpaces inflation,” wrote FundStrat.
- FundStrat also expects bitcoin to reach $100,000 this year and the total cryptocurrency market cap to reach $5 trillion.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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