Reading time: ~ 2 m
Leading analyst at 8848 Invest Viktor Pershikov spoke about how to take advantage of the growth in the share of the largest altcoin in terms of capitalization on the crypto market
The opinions of experts may not coincide with the position of the editorial board. RBC-Crypto does not provide investment advice, the material is published for informational purposes only. Cryptocurrency is a volatile asset that can lead to financial losses.
The confrontation between the two largest assets on the crypto market is gaining momentum. Ethereum is experiencing another rise while Bitcoin is under fundamental pressure from global regulators, the mining industry, and institutional players. Despite high fees and competing blockchain projects, NFT and DeFi have breathed new life into Ethereum. Next year, these sectors will undergo additional capitalization, which will have a positive impact on Vitalik Buterin’s project. In addition, the transition to Ethereum 2.0 is getting closer, and the project is actively developing towards the PoS algorithm, which makes it an alternative to Bitcoin powered by PoW.
Recent protocol updates have made Ethereum more deflationary than Bitcoin: internal inflation in ETH is slightly lower than in the benchmark. Therefore, investors in classic markets looking to save their assets from inflation are now increasingly focusing on ETH for such investments. This is reflected in the growth in demand and trading volumes for this cryptocurrency. Without diminishing the advantages of BTC as an alternative asset that allows you to maintain “value”, ether is in no way inferior to it in this respect.
Taking into account the expectations of continued inflationary pressure next year, as well as the strengthening of the role of global regulators and the additional capitalization of the DeFi and NFT sphere, I see a greater investment potential in Ethereum than in Bitcoin, and I recommend rebalancing my assets in favor of Ethereum.
Investment levels: buying ETH to BTC at current levels (0.08 BTC) with a stop of 0.05 and a target of 0.161.
Target indicators: the potential return on investment is 100%, with a risk of 36% (1 to 2.7).
Idea risks:
- technological problems in the ETH network, in which the operability will be questionable (including insufficient scaling against the background of an increase in the number of transactions);
- a sharp rise in tokens of competing protocols (Avalanche, Solana);
- regulatory and legal issues for ETH as a project that is the basis of the unregulated DeFi segment;
- a significant increase in the price of BTC with the stagnation of the altcoin sector of the crypto market.
#earnings #sale #bitcoin #Ethereum
