Goldman Sachs predicts Ethereum to overrun Bitcoin
Industry News
Bitcoin and Ethereum are two eternal crypto competitors, claiming the throne of the market. Ethereum has got used to being the runner-up but has exceptionally high potential for further development. Goldman Sachs, one of the world’s largest investment banks, predicts that ‘digital oil’ may even overrun Bitcoin.
The institution highlights the growing popularity of the Ethereum blockchain, and this factor may push the second-largest cryptocurrency forward. This blockchain is a base for the vast majority of DeFi projects, non-fungible tokens, and even CBDCs.
This year ETH reached a new all-time high at $4 362 (May 12, 2021), showing 2332% yearly growth. Furthermore, Ethereum’s dominance reached 18% (the highest index since January 2018).
What about further development? The second-largest crypto is ready for its historical breakthrough known as Ethereum 2.0.
The upcoming upgrade is about to change the consensus protocol type from Proof-of-Work to Proof-of-Stake, making the network more secure. Furthermore, the Ethereum blockchain will be able to process up to 100 000 transactions per second, rather than the current 30.
Goldman Sachs pointed out two more digital assets as applicants for the crypto throne: Binance Coin and Cardano.
Meanwhile, the investment bank put an emphasis that gold is still a better investment than cryptocurrencies. Goldman Sachs focuses on the volatility of digital assets. As for the statistics, the gold price yearly growth is 0.27%. The crypto market capitalization has increased by 497% within the same period.
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