Ethereum (CRYPTO: ETH) blockchain’s applications and other fundamentals are likely to supercharge the coin’s value growth until it overtakes Bitcoin (CRYPTO: BTC), according to Pantera Capital CEO Dan Morehead.
What Happened: According to a Tuesday Reuters report, Morehead cited Ethereum’s lower environmental impact, potential applications, and technical upgrades as factors which will probably cause it to outperform Bitcoin as an investment.
He also explained during the Reuters Global Markets Forum on Monday that Ethereum is a more recent asset than Bitcoin, so it is likely still further to run than Bitcoin.
Morehead also cited the Ethereim Improvement Proposal (EIP) 1559, which he believes will help it trade more like a fixed asset.
EIP-1559 is expected to significantly decrease Ethereum’s inflation by burning (destroying) a significant portion of the fees paid for transactions on the network — starting this Wednesday.
According to the Pantera Capital’s executive, we should expect “people who want to store wealth, doing it in (Ether) rather than just Bitcoin.”
Morehead also pointed out that when Ethereum finally completes its long-awaited transition to proof-of-stake (PoS), it will do away with energy-intensive mining farms and will become much more environment-friendly than Bitcoin. Ethereum’s use in decentralized finance (DeFi) applications will purportedly help support its prices further.
Price Action: According to CoinMarketCap data, Ethereum is currently priced at $2,518 after losing 4.03% of its value over the last 24 hours.
This price is nearly 40% lower than the mid-May high of $4,168, but also over 40.6% up from late July’s low of $1,787.