HomeNewsFidelity Foresees Shining Future for Ethereum; Bitcoin Faces Mixed Views

Fidelity Foresees Shining Future for Ethereum; Bitcoin Faces Mixed Views

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  • Fidelity Digital Assets published a report predicting a promising outlook for Ethereum, with a year-to-date increase in value of 60%.
  • A CryptoVantage survey revealed that 46% of its respondents believe Ethereum will surpass Bitcoin.

Investment titan Fidelity Digital Assets, in a recent report, has cast a favorable gaze on the future of Ethereum, projecting an optimistic outlook for both the immediate and long-term future. However, Bitcoin’s prospects seem to inspire less confidence in the firm.

Ethereum’s Promising Trajectory: Burn Rates and Active Validators

The firm’s outlook forms part of the “Q2 2023 Signals Report” published on July 18, 2023. The report encapsulates Ethereum’s forecast for the coming year and beyond, indicating short-term bullish sentiments for the leading altcoin, tempered expectations for the mid-term, but a bullish perspective for the long-term.

Key factors bolstering this view include Ethereum’s higher burn rate compared to its issuance. Notably, since the September 2022 Merge, over 700,000 tokens have been purged from the network, a bullish indicator for the asset’s value.

Moreover, Ethereum’s ecosystem continues to grow, with a 15% increase in active validators in Q2. Furthermore, the upcoming EIP-1153 update, featuring the “transient storage opcode” promising efficiency enhancements and cost reductions, is stoking enthusiasm for the Ethereum network.

Despite these positive indicators, the total value locked (TVL) on the Ethereum network has sunk to a record low since April 2020, currently standing at 13.7 million ETH, approximately $26 billion.

Public Sentiment: Ethereum Over Bitcoin?

A recent survey by CryptoVantage unveiled that 46% of its 1,000 respondents, all Americans who have purchased cryptocurrency within the past five years, believe Ethereum will overtake Bitcoin. Nevertheless, 70% of these respondents maintain the belief that Bitcoin will revisit its all-time highs within the next five years.

On the other hand, Fidelity’s report holds a bullish view for Bitcoin both in the immediate and long-term future. However, concerns from the CryptoVantage survey show that 21% of respondents believe that the U.S. Securities and Exchange Commission (SEC) lawsuits against Binance and Coinbase could negatively impact the future value of cryptocurrencies.

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Godfrey Benjamin
Godfrey Benjamin
Godfrey Benjamin is an experienced crypto journalist whose primary goal is to educate everyone about the prospects of Web 3.0. His love for crypto was sparked during his time as a former banker when he recognized the clear advantages of decentralized money over traditional payments. Business Email: info@ethnews.com Phone: +49 160 92211628