Trend Research: The market capitalization of Ethereum could surpass Bitcoin within two cycles
Key Findings:
Trend Research reports that the demand for ETH from institutions significantly exceeds the unstaked supply.
The report highlights crypto-friendly policies and the growing consensus on Wall Street regarding the long-term value of Ethereum.
The market capitalization of ETH is projected to exceed BTC within 1–2 bull-bear cycles.
Demand for ETH exceeds supply
Trend Research, the secondary investment division of Liquid Capital, stated in its latest report that institutional demand for Ethereum (ETH) has risen to levels that significantly exceed the available unstaked supply. The company noted that such a disparity between demand and supply is unsustainable in the long term, creating conditions for structural upward pressure on ETH.
Wall Street is becoming optimistic about Ethereum
The report notes crypto-friendly regulatory policies and the increasing recognition of ETH on Wall Street as key factors contributing to the buying frenzy. According to Trend Research, the upcoming cycle of declining global interest rates could accelerate this trend, making digital assets more attractive compared to traditional fixed-income instruments.
Will the market capitalization of ETH exceed the capitalization of BTC?
Given these dynamics, Trend Research has raised its long-term price target for ETH and predicted that the market capitalization of Ethereum could surpass that of Bitcoin within one to two bull-bear cycles.
Such a scenario would mark a significant shift in the structure of the crypto market, with ETH potentially becoming the dominant digital asset due to widespread institutional adoption, staking economics, and use cases in DeFi and Web3.