🚀📈 FINALLY #Ethereum ! Wall Street analysts give 3 reasons for its recent 65% rise.
After a period of underperformance against Bitcoin, $ETH has experienced a strong rebound. Gautam Chhugani from Bernstein highlights three key factors for this change in dynamics:
1️⃣ Broader crypto narrative beyond #bitcoin : Attention is shifting to other use cases such as payments with stablecoins and tokenization of securities, areas where #ETH holds a dominant position (51% of the stablecoin supply). Moves by companies like Stripe and Meta reignite interest in Ethereum's stablecoin infrastructure.
2️⃣ Rise of institutional Layer 2s: Layer 2 networks built on Ethereum by major institutions are driving demand for ETH for gas and settlement. This positions Ethereum as an institutional leader among smart contract blockchains.
3️⃣ Hedge fund hedges: Over the past few months, hedge funds favored long positions in #BTC and $SOL , short-selling ETH. With the narrative shifting towards real-world adoption and institutional use cases, maintaining Ethereum as a relatively underperforming asset becomes difficult, leading to the unwinding of these hedges and allowing ETH to reach its value.
Bernstein adds that this broader rally, beyond $BTC , is also positive for exchanges and brokers, who may see an uptick in retail activity.
Do you think Ethereum will continue its rally and outperform Bitcoin in the short term? Which of these three reasons do you consider the most impactful?
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