Ethereum is viewed by Fidelity as a store of value asset, standing out in the cryptocurrency market with trading volumes temporarily surpassing Bitcoin.
In addition to its role as a payment medium on the Ethereum Blockchain, ETH is increasingly recognized as an asset preservation choice, attracting significant interest from investors and top financial institutions.
MAIN CONTENT
Fidelity recognizes ETH as an alternative store of value asset for emerging economies.
ETH has surpassed Bitcoin in trading volume and speculative interest recently.
Market analysis and futures data indicate a positive trend for ETH in Q3 2024.
How does Fidelity assess Ethereum's role as a store of value?
Fidelity, a major asset manager on Wall Street, views ETH as a potential alternative asset preservation similar to the currencies of emerging economies. According to the 2024 report, ETH is not only a payment currency on the Ethereum network but can also function as an efficient medium of exchange and store of value.
Fidelity emphasizes that each blockchain has its own integrated currency, so it should be compared with sovereign nations and economies rather than Web 2.0 companies. They also point out that ETH is the asset with the highest trading volume on exchanges and is the main asset for collateralized lending.
"Ether is used for all transactions on the Ethereum blockchain, regardless of the type of transaction... Ether serves both as a medium of exchange and a store of value."
Fidelity, Financial Report, 2024
What is the market reaction and impact of Fidelity's report on ETH?
Fidelity's report creates a strong positive effect, helping ETH overcome a severe downturn in 2024 when ETH prices dropped nearly 70% compared to Bitcoin. From being doubted as a store of value asset, ETH is now seen as an attractive investment opportunity by many experts and Ethereum educators.
Sassal, Ethereum instructor, asserts that ETH is currently severely undervalued with a market capitalization of only 316 billion USD compared to a potential of up to 100 trillion USD. The increasing expectations are fueled by the growth trend of stablecoins and the capital market on the internet, promoting a positive sentiment for ETH.
"ETH is a 100 trillion USD asset but is trading with a market cap of only 316 billion USD."
Sassal, Ethereum Instructor, 2024
What does ETH surpassing Bitcoin in trading volume and futures signify?
Data from CoinGlass and Deribit shows that ETH has surpassed Bitcoin in daily trading volume and speculative interest in the futures market. ETH's Open Interest increased by 7% while Bitcoin decreased by 0.18%, with ETH futures trading volume reaching nearly 59 billion USD, about 3 billion USD higher than Bitcoin.
This indicates an increase in demand for ETH investment, reinforcing the potential for ETH to deliver superior returns in the short term compared to Bitcoin. The Put/Call Ratio of only 0.44 reflects the pressure to purchase call options—expecting a strong price increase for ETH in Q3 2024.
Source: CoinGlass
Source: Deribit
What are the ETH price forecasts and market expectations for Q3 2024?
Analysts forecast that ETH could fluctuate around the threshold of 2,800 to 3,200 USD in Q3, with a potential minimum price of around 2,000 USD if the options expire worthless. Nevertheless, options traders still lean towards a positive direction, expecting ETH to break through the 3,000 USD threshold.
This balance reflects the liquidity and strong competition of ETH in the cryptocurrency financial market. If this trend continues, ETH has the opportunity to strengthen its position and even outperform Bitcoin in investment performance in the near future.
Frequently Asked Questions
Can ETH be considered an alternative store of value to Bitcoin?
Fidelity and many financial institutions view ETH as a potential alternative with a role in value storage, especially in the context of blockchain and DeFi development.
Why has ETH's trading volume recently surpassed Bitcoin?
ETH is widely used in DeFi, NFTs, and Smart Contract applications, attracting investors more actively than Bitcoin, especially in the futures market.
What does Open Interest data indicate about ETH trends?
The increase in Open Interest indicates that investors expect ETH prices to continue rising, creating greater buying pressure than selling in the futures market.
Will ETH see a significant price increase in Q3 2024?
Based on the Put/Call ratio and market analysis, the likelihood of ETH surpassing the 3,000 USD mark in Q3 is quite high, but it still carries risks from market volatility.
Can ETH replace Bitcoin in the near future in terms of investment?
With a central role in the modern blockchain ecosystem and the growth of DeFi, ETH has strong competitive potential; however, Bitcoin still maintains its position as the leading store of value asset.
Source: https://tintucbitcoin.com/ethereum-giu-gia-eth-sap-3-200-usd/
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