TL;DR Breakdown
- Goldman Sachs predicts that Ethereum can become the next dominant store of value.
- Ethereum is being projected to overtake BTC in the near future in terms of market cap.
- Ethereum’s smart contracts will be the reason behind this huge adoption of adoption.
Goldman Sachs predicts that Ethereum will have a bigger market cap in the near future as compared to Bitcoin because it supports a humongous amount of use cases, and the number of projects that are happening on the Ethereum chain increases with time.
While the huge adoption of Ethereum has proved beneficial for projects like Polygon, the NFT industry is booming, with major tokens being hosted on the Ethereum chain. The Ethereum chain became so popular that it became congested a few months ago.
Goldman Sachs predicts that Ethereum will surpass BTC as a store of value
Bitcoin is mainly recognized as the best and most dominant store of value, but Goldman Sachs sees it differently. Goldman Sachs predicts that Ethereum will surpass BTC and become the most dominant store of value as its first-mover advantage will soon be over.
The reason behind this statement was that Bitcoin grew by 261 percent last year, while at the same time, the Ethereum coin went up by around 856 percent. This was definitely a notable moment in the history of cryptocurrencies.
Ethereum smart contracts gaining ground
Ethereum smart contracts are an efficient way to trigger those digital contracts that are formed in Decentralized Finance. These smart contracts are also involved with Dapps that are powered using cryptocurrencies.
Goldman Sachs predicts that Ethereum smart contracts will play a major role in the rise of Ethereum as the biggest cryptocurrency by market cap in the future. Although, the analysts also compared gold to crypto, citing the former as a defensive “inflation hedge” and the latter as a “risk-on inflation hedge,” which means that the competition among cryptocurrencies involves investment risks.
