The market capital of Ethereum could surpass that of Bitcoin, economist Raoul Pal Pal believes.
In the view of Raoul Pal, Ethereum would have a considerably greater market capitalization over the next decade than Bitcoin. Raoul Pal, a former hedge fund manager, is the Real Vision group’s co-founder and chief executive. He is also an investment analyst at Investor Global Macro.
Ethereum has a total market capital of $62 billion, according to Coinmarketcap. This represents 18% of Bitcoin’s market cap, which at the time of writing, is over $333 billion. Ethereum has a long way to go if Pal’s forecast is anything to go by then since its value is only a fifth of Bitcoin’s.
Pal outlined multiple reasons to back up his bold statement in a series of tweets. He contrasted the sizes of cryptocurrencies with standard markets such as derivatives.
Ethereum came out as bullish, with a probability that it might have an entire economy running on it in the future.
â€œMy hunch is BTC is a perfect collateral layer but ETH might be bigger in market cap terms in 10 years for the reasons above.â€he wrote
It isn’t easy to believe that Ethereum will overtake Bitcoin, but that does not mean that there are zero chances of it happening. In crypto-space, surprises and long shots are not unheard of. After scaling to new peaks in late November, Bitcoin is in a correction phase at the moment. At present, it is trading at $17,850.
Ethereum, which trades for $545, is similarly unpredictable. However, the Ethereum network has an advantage over the blockchain of Bitcoin. The network enables secure coins and even non-fungible gaming tokens to tokenize properties. Even in the future financial world, this makes it a critical factor.
The new decentralized financing that has taken the financial world by storm is also the case. Despite rising blockchains like Binance Smart Chain and Polkadot, DeFi is still primarily focused on Ethereum. None of these upcoming systems for blockchain are similar to dethroning Ethereum at present. DeFi’s progress means Ethereum’s rise.