Analysts at the investment bank Goldman Sachs predicted that Ethereum would become the dominant store of value and overtake Bitcoin in market capitalization, RBC Crypto writes with reference to Business Insider. The bank is confident that at the moment altcoin has the highest potential for use, since the Ethereum blockchain is considered the most popular platform for developing smart contracts.
As of July 7, the capitalization of bitcoin, according to CoinGecko, is $ 653 billion.The market capitalization of Ethereum exceeds $ 278 billion.
Analysts also believe that neither Ethereum nor Bitcoin will be able to outstrip gold in the near future, since high volatility will prevent cryptocurrencies from becoming a safe asset.
“Gold competes with cryptocurrency as much as it competes with other risky assets such as stocks and cyclical commodities. We view gold as a defensive hedge of inflation, and cryptocurrency as a hedge of inflation risk, ”explained Goldman Sachs.
In June, Bloomberg analysts already argued that Ethereum will surpass Bitcoin in market capitalization. In their opinion, altcoin, unlike the main cryptocurrency, can be used not only as a “store of value”. Analysts note that Ethereum has grown from an ordinary digital coin into an entire ecosystem.