Amidst the cryptocurrency crash that left the market in tatters, experts and crypto analysts were in unison to declare that one digital token has the potential for an immense comeback in the long term: Ethereum.
With decentralized finance (DeFi) apps running in its network that are set to change the landscape of the financial industry, Ethereum seems to get nod from most experts as the best cryptocurrency investment.
Ethereum Value: 'Much Better Quality' Than Bitcoin
Add Todd Morley, co-founder and former executive of Guggenheim Partners, to that list. Morley, who has since been a cryptocurrency investor and entrepreneur, expressed optimism to Forbes about the ether-based blockchain. he said it has "much better quality" than the top digital currency, Bitcoin.
In his interview with Bloomberg TV as reported in Forbes, Morley said Ethereum is a "much bigger utility (than Bitcoin)" since it carries smart contracts. He described Ethereum growing 20 times more in the past six years, which is "much faster than Moore's Law, so that's where the action is."
He also mentioned the prevalence and popularity of DeFi apps that sit on top of the Ethereum network as the driving force behind the skyrocketing of its market price, in addition to immensely traded non-fungible tokens (NFTs) that also run on the blockchain.
Ethereum Price Prediction: Growth Outpaced Bitcoin
Market behavior has proved these experts right, as the pace of Ethereum price's growth over the past months has gone faster than Bitcoin, adding about 1,000 percent to its value, as against Bitcoin's 300 percent, Forbes said. Ethereum's market capitalization soared to nearly $300 billion, which is slowly approaching Bitcoin's $700 billion market cap.
Another Wall Street veteran Jim Bianco said in an interview with CNBC Wednesday that Ethereum is "going to be a lot higher way down the road."
However, he said investors must endure more debacles similar to last week's cryptocurrency crash, wherein trillions in value were lost. Despite this, Bianco said cryptocurrencies have "a lot of promise."
Ethereum: 'Amazon of Information'
Meanwhile, Goldman Sachs likewise gave Ethereum a rosy forecast of a "high chance" of surpassing Bitcoin as the "dominant store of value," a leaked document reported obtained by Forbes said.
The investment bank further described Ethereum as the "Amazon of information."
Goldman Sachs analysts emphasized that this is due to a thriving Ethereum ecosystem that "supports smart contracts and provides a way to create new applications on its platform."
The analysts also pointed out other factors that could increase Ethereum prices, including the fact that most decentralized finance (DeFi) apps are being developed on the Ethereum network. Also, most non-fungible tokens (NFTs) are being purchased with the use of Ether, as The Ascent report noted.
This report came after the Bitcoin value dropped 50 percent from its all-time high of $65,000 in April. Ethereum also tumbled to more than half its value last Wednesday after reaching its own record high of $4,000 in early May to a head-scratching intraday low of $1,895.