Aug 3 (Reuters) – The potential applications of the Ethereum platform, its reduced environmental impact and technical upgrades should help the ether token continue to outperform bitcoin, said Dan Morehead, CEO of Pantera Capital.
As a newer token, ether must work more than bitcoin, Morehead told the Reuters Global Markets Forum on Monday, adding that the latest upgrade to Ethereum Improvement Proposal (EIP) 1559 would help. to be traded more like a fixed asset.
“You will see a transition of people wanting to store wealth, doing so in (ether) rather than bitcoin,” he added.
Scheduled to go live on Wednesday, EIP 1559 dramatically changes the way transactions are processed on the Ethereum blockchain and reduces the supply of the ether token. Read more
The migration to upgraded “Ethereum 2.0” will reduce the mining energy consumption of ether relative to bitcoin’s large carbon footprint, Morehead said.
The use of blockchain in decentralized finance (DeFi) applications will also support prices, he added.
Ether, the world’s second largest cryptocurrency, more than doubled its price in 2021 at its Monday close of $ 2,608, compared to bitcoin’s 46% increase to $ 39,166.
Ether’s market cap was around $ 306 billion on Monday, less than half of Bitcoin’s $ 737 billion, according to tracker CoinGecko.com.
Morehead sees bitcoin ending in 2021 between $ 80,000 and $ 90,000, and surpassing $ 120,000 in one year. Increased widespread adoption could push it up to $ 700,000 over the next decade, he said.
Despite recent volatility that has left bitcoin 40% below its all-time high in April of $ 64,895, Morehead said Pantera Capital’s funds have attracted institutional investors who are less momentum-oriented than investors from Pantera Capital. retail, and see current prices as a buying opportunity.
He also sees increased regulatory oversight, such as a global crackdown on the Binance cryptocurrency exchange, as a “transition” phase.
Pantera, which manages $ 2.8 billion in blockchain-related assets, has invested in several crypto exchanges including Bitstamp, Coinbase (COIN.O), and regional exchanges such as Mexico-based Bitso.
(This interview was conducted in the Reuters Global Markets Forum, a chat room hosted on the Refinitiv Messenger platform. Join GMF: https://refini.tv/33uoFoQ)
Reporting by Lisa Pauline Mattackal and Aaron Saldanha in Bengaluru; Editing by Divya Chowdhury and Jacqueline Wong
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