In its recent Q2 2024 LP letter shared by Tomaino, 1confirmation puts forward its strongest crypto theses presently, which includes Ethereum challenging Bitcoin’s market reign.
The 1confirmation CEO predicts that the Ethereum market cap will flip the Bitcoin market cap in the next five years. Today, the BTC market cap (over $1.2 trillion) is nearly four times the ETH market cap ($321 billion). However, he believes both will continue to grow but ETH will eventually flip BTC. Tomaino states the reason for his market prediction.
According to Tomaino, BTC has a clear narrative (digital gold) that institutions have bought into by now. While Ethereum has been the most impactful blockchain in the crypto space for the past five years, ETH is not yet well understood. He went on to say that Ethereum is the chain in which talented developers are building the decentralized internet and ETH is the digital oil that powers it.
Tomaino believes ETH is scarce, yield-bearing and useful, and since its market cap is now significantly smaller than BTC, Wall Street can own more of it, allowing it to shill the ETH narrative aggressively to the world in the coming years.
BTC finally got the recovery the market had been waiting for, with the recent Fed chair Jerome Powell’s speech at Jackson Hole serving as the catalyst it needed to break out of the $58,000 to $62,000 range. Rate cuts seem confirmed for September, but there was no indication on how much, so August payrolls will be critical.
On the other hand, Ethereum spot ETF had a total net outflow of $5.6976 million on Aug. 23, and continued net outflow for seven consecutive days. Grayscale ETF ETHE had an outflow of $9.7656 million, and VanEck ETF ETHV had an inflow of $2.0063 million. The total net asset value of Ethereum spot ETF is $7.652 billion.
Ethereum ETFs officially began trading in the U.S. in July, putting ETH in a vehicle favored by many professional investors and advisors.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
