- A recent survey unveils that 47% of investors are optimistic about Ethereum surpassing Bitcoin in the coming year.
- Fidelity Digital Assets’ “Q2 2023 Signals Report” cites Ethereum’s high burn rate, new address momentum, and growing network validators as the basis for this optimism.
An upsurge in investor confidence around Ethereum has become apparent as a recent survey divulges a bullish sentiment for the cryptocurrency. Nearly half of investors anticipate Ethereum (ETH) to outdo Bitcoin (BTC) in the next twelve months, as reported by Cointelegraph.
Betting on Ethereum: The Investor’s Take
This revelation springs from the “Q2 2023 Signals Report” released by Fidelity Digital Assets, which indicates a robust optimism surrounding Ethereum for the upcoming year and beyond. The report underpins this investor buoyancy to several key aspects of the Ethereum network: a higher burn rate compared to coin issuance, a rising ‘new address momentum’, and a noticeable increase in the number of network validators.
The document notes a net supply decrease of more than 700,000 Ether since the Merge in September 2022, which significantly underscores the network’s high burn rate.
Anticipating the Future: Ethereum Network Upgrades
Projected enhancements to the Ethereum network also play a role in fostering this optimism. The much-awaited “Dencun” upgrade, along with the launch of Uniswap v4, are predicted to augment smart contract efficiency, curtail costs, and potentially recover market share lost to high gas fees.
The mention of EIP-1153 inclusion in the imminent “Dencun” upgrade spurs this anticipation further. This ‘transient storage opcode’ enhances smart contract efficiency and refines the Ethereum Virtual Machine’s design – a crucial development, particularly for decentralized exchanges (DEXs).
Uniswap’s v4 upgrade, according to a presentation at the Ethereum Community Conference, promises to revolutionize users’ interaction with the platform. The new upgrade is slated to allow the creation of infinite types of pools using programmable buttons (hooks), native ETH support, and a singleton contract that executes internal transactions before finalizing balances.
The proposal of EIP-1153’s inclusion in the “Dencun” upgrade has revitalized expectations around Ethereum network’s capability to recoup market share lost due to steep gas fees. Ethereum’s total value locked has seen a dip to its lowest since April 2020, standing at 13.55 million ETH, as per DefiLlama data, largely due to these high transaction costs.
While investor sentiment strongly favors Ethereum’s potential to ‘flippen’ Bitcoin, it’s vital to approach these predictions with a grain of salt. However, these developments certainly point to exciting times ahead in the cryptoverse.