#Fundstrat #Global #Advisors echoed its bullish #forecast for the #Ethereum #price in its latest report. The company says the price of Ether could rise to $ 10,000 over the year.
Fundstrat explained in their report why they are still bullish for Ethereum . The foundation of the company's belief that the price of Ether will rise is based on the activity seen in the Ethereum economy as a result of major developments in the network.
↘️There is a transition to Ethereum
The company says that new investors who step into the cryptocurrency market are often the first to hear about Bitcoin and buy BTC without knowing about other cryptocurrencies.
Fundstrat stated that institutional investors are just starting to learn other crypto assets similar to new investors. Ethereum correlates with the transition seen towards DeFi and web 3.0 applications.
↘️Ethereum and bitcoin cutthroat
The market cap of Ether has risen to about 30 percent of the Bitcoin market cap in recent weeks. However, Ethereum's market cap appears to be lower than Bitcoin but transaction fee revenue is higher than Ethereum.
Bitcoin's annual transaction fee has been around $ 2 billion since the beginning of the year, while Ethereum's $ 7 billion.
ethereum-bitcoin-chart
Market value comparison (left), transaction fee yield (right)
The total value of assets locked into the Ethereum-based DeFi ecosystem in 2021 exceeded $ 67 billion. Fundstrat notes that DeFi apps offer about three times the return on the Ethereum network.
⚠️2021 forecasts⚠️
The company says Bitcoin could go up to $ 100,000 this year, and Ether up to $ 10,000. However, it is stated that they are bullish not only for these two crypto currencies, but for the crypto money market in general. According to the report, the total value of the cryptocurrency market this year could reach up to $ 5 trillion.
Ether price surged to $ 2,872 on May 1st, hitting an all-time high , according to CoinGecko . Ether, which has gained 50 percent since the beginning of April, has reached a market value of $ 330 billion