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Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

News
Wed, 07/01/2020 - 13:17
Vladislav Sopov
Ex-Messari analyst and seasoned macro investor Qiao Wang published a detailed review of the real and false Ethereum (ETH) price catalysts
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Cover image via twitter.com
Contents

Top-notch macro analyst and investor, Qiao Wang, dismissed some delusions about popular Ethereum (ETH) price catalysts and indicated the drivers that could really work.

Don't overestimate network usage

According to a tweetstorm by Mr. Wang, typically, network characteristics are seen as the main Ethereum (ETH) price drivers. Despite the fact that the Ethereum 'network effect' looks healthy enough to win in a smart contract war, it doesn't directly boost the price.

Qiao Wang: Ethereum (ETH) adoption isn't its best price catalyst
Image via Twitter

Instead of this, the two most obvious catalysts for the Ethereum (ETH) price for Mr. Qiao Wang include:

  1. Transition to Proof-of-Stake (ETH2);
  2. Fixing monetary policy

With a Proof-of-Stake roll-out, a huge share of Ethereum in the circulating supply will be locked by stakers. A stable yield from the validation processes is the direct motivation for people to buy and hold Ethereum (ETH).

Should this be accompanied by the proper monetary policy (not limited to partial fee burning), such progress would definitely attract people to Ethereum (ETH).

Waiting for Ethereum (ETH) 2.0

To properly evaluate the Ethereum (ETH) price catalysts, Mr. Wang recommends avoiding searching for a direct positive correlation between network usage and the price of its native asset. He calls this bias 'lethal mind virus' and remembered that Silver (XAG) isn't as valuable as Gold (XAU) despite much broader industrial usage.

According to the analyst, people need much more evidence that 'Ethereum is money' to start using it this way. Consequently, the Ether community just needs to wait for the roll-out of the Ethereum (ETH) 2.0 zero phase or Beacon Chain.

Despite not causing an immediate and splendidly bullish reaction, Mr. Wang insists that he doesn't foresee a major down move either.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)

Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director

News
Mon, 07/13/2020 - 14:38
Vladislav Sopov
John Lilic, managing director at ConsenSys decentralized development studio, has shared an over-bullish prediction for Ethereum (ETH) progress
Ethereum (ETH) Market Cap May Become Equal to Bitcoin's (BTC): ConsenSys Director
Cover image via stock.adobe.com
Contents

John Lilic leads international business development in the ConsenSys leading blockchain development studio. He is also an expert in energy markets and cryptocurrency segments. He tracked the progress of Bitcoin's (BTC) and Ethereum's (ETH) market capitalization statistics, coming up with an extravagant prediction.

Bitcoin (BTC) should get ready for parity

Mr. Lilic outlined that Ethereum (ETH) is showcasing much healthier dynamics than its competitor is. For instance, the flagship cryptocurrency still surpasses Ethereum (ETH) by 6.3x in terms of market capitalization, while simultaneously collecting 20% fewer fees than Ethereum (ETH).

John Lilic of ConSensys foresees parity of Bitcoin (BTC) and Ethereum (ETH) market capitalizations
Image via Twitter

Also, Ethereum (ETH) is demonstrating much more impressive price dynamics this year. It gained almost 37% against Bitcoin (BTC) in 2020. That said, Ethereum (ETH) looks severely undervalued to the top manager of ConsenSys.

However, Ether is on the path to eliminating this discrepancy. Eventually, the top two cryptocurrencies may reach market capitalization parity, concludes Mr. Lilic.

Related Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains
Related
Bitcoin (BTC) and Ethereum Have (ETH) Recovered From Black Thursday, Who Else? Coinmetrics Explains

As covered by U.Today Crypto News recently, Coinmetrics on-chain research team called Bitcoin (BTC) and Ethereum (ETH) the unique crypto behemoths that have managed to recover from Black Thursday.

Bitcoin (BTC) is losing supremacy in "fee race"

Should Ethereum (ETH) overcome its undervaluation, its price may be over $1,550 based on liquid supply and current Bitcoin (BTC) market capitalization.

Recently, it was unveiled that Ethereum (ETH) blockchain continues to surpass Bitcoin (BTC) in terms of network fees for more than 30 days in a row. Ethereum (ETH) is seeing this advantage for the first time in its history.

As U.Today Crypto News reported previously, ex-Messari analyst and angel investor Qiao Wang identifies two main catalysts of Ethereum's (ETH) price run in the mid-term perspective.

Related Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang
Related
Ethereum (ETH) Price Two Bullish Signals, According to Investor Qiao Wang

According to Wang, the upcoming rally may be fueled by a long-awaited transition to Proof of Stake and fixing the monetary policy of Ether token.

About the author

Blockchain Analyst & Writer with scientific background. 5+ years in IT-analytics, 2+ years in blockchain.

Worked in independent analysis (Crypto Briefing) as well as in start-ups (Swap.online, Monoreto, Attic Lab etc.)