In a note to investors, expert David Grider believes the Ether’s share price could rise to new heights. He estimates that its value could be multiplied by 7 due to its central place in the DeFi.
In the space of a few months, the value of Bitcoin jumped. Ether starts the year even better. This week it beat its previous ATH of 2018. Since then, however, the price of ETH has been around 1300 dollars.
Could the concentration of investments in the two main cryptocurrencies take its value to new heights? For one analyst, the growth potential of Ether is considerable.
Fundstrat’s strategist, David Grider, has set a target of $10,500. This would be equivalent to multiplying by 7 the current value of the native Ethereum token. In a note to investors, spotted by Bloomberg, Grider considers ETH to have serious advantages in the field.
According to this expert, the crypto-active token would present “the best risk/reward investment ratio in crypto”. But he also insists on the preponderant place of Ethereum in the amount field of decentralized finance, or DeFi.
And the beginnings of ETH 2.0, with the adoption of Proof-of-Stake and increased scalability of the blockchain, should help further strengthen Ethereum’s position in this sector of digital finance.
In fact, 96% of the DeFi transaction volume is processed through the Ethereum blockchain. And this domination is also found in the field of active crypto-wallets. Ethereum portfolios thus account for 57% of the active wallets every day.
However, the DeFi actors regularly complain about the congestion of the Ethereum network. This causes transaction costs to skyrocket and thus penalizes economic models that are still fragile.
Moreover, despite the success of the staking on ETH 2.0, the implementation of the next version of the blockchain will still take time. It should take at most another 2 years for Ethereum 2.0 to be released.
However, these known weaknesses of Ethereum do not seem to penalize the price of Ether for the moment. According to Cointelegraph, cryptocurrencies have increased by more than 100% over the last 30 days. And the Ethereum network processes 28% more transactions every day than Bitcoin.