Many believe that Ethereum is still undervalued looking at the real-world utility of its blockchain.
The cryptocurrency market has seen an incredible rally in the last few weeks with a number of digital assets setting new all-time highs and others nearing their previous all-time high records. The price of Ethereum has not disappointed as it has risen significantly with a surge of over 100% in the last three months to record a new all-time high of $2200.
Binance coin (BNB) has also made incredible progress with over 3000% since last year to hit a record price of $540. XRP is defiling all odds following the lawsuit against the company to trade at $1.6. Bitcoin, the largest cryptocurrency by price and market cap has set another all-time high of $63,000. This market growth after its long-lasting pullback and price stagnation in 2018 through 2019 reveals the real price behaviors of these asset classes.
The price of Ethereum has been tipped for even a higher height due to the level of adoption for its platform. The Ethereum ecosystem has found massive popularity among decentralized finance and Non-Fungible Token (NFT) developers. Its popularity puts it on top ahead of all alternatives. Many believe that Ethereum is still undervalued looking at the real-world utility of its blockchain. Its market cap of around $240 billion makes it the second-largest cryptocurrency, though far behind Bitcoin which has a market cap of over $1 trillion. The price of Ethereum is the manifestation of its functions unlike most of the small market cap assets that thrive on speculations.
Bitcoin on the other hand has been said to have the potential to even surge forward-looking at the rate of institutional and retail interest making its adoption second to none. It can be recalled that Tesla Inc (NISDAQ: TSLA) invested $1.5 billion in this digital asset, and many other institutions have followed the trend.
According to Matthew Dibbs, the COO and co-founder of Stack Funds, the general performance of the cryptocurrency market has something to do with the Coinbase listing which is around the corner.
“A re-rating of crypto assets is definitely on the cards following the $100b valuations of Coinbase’s shares (COIN),” Dibbs added.
Coinbase shares (COIN) have been predicted to have a listing that ranges from $19 billion to $230 billion. The overall positive note from the current bull-run is the performance of the altcoins.
Previously, Bitcoin had total dominance of the market with a market cap of around 60%. However, the altcoins have nullified the dominance of Bitcoin to send it to a two-year low of 55%. This means the altcoins are finally breaking away from the chains of Bitcoin to independently move based on their valuations rather than the huge impact of the spread-over effect.
Despite the trillion valuations of Bitcoin, its market cap remains a fraction of the market cap of gold, making investors believe that Bitcoin price is still in the early stage, and the same can be said of the price of Ethereum.
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