Why Are More Institutional Traders Hoarding Ethereum?

区块链骑士

特邀专栏作者

2021-01-28 10:48 (UTC+8)

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Ethereum's potential as a store of value is constantly evolving.

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Ethereum's potential as a store of value is constantly evolving.

From Bitcoin to Ethereum,More and more institutional traders seem to be interested in accumulating Ethereum for long-term gains, the reason being that Ethereum is also a store of value.

1. Ethereum: A better target for value accumulation?

Accumulating bitcoins has been the cryptocurrency’s primary store of value for years. Investors look to bitcoin as a hedge against economic turmoil. However, institutional traders are now also taking a keen interest in Ethereum.

Coinbase's "2020 Annual Review Report" noted that institutional customers are increasingly interested in Ethereum, and the reason is related to how investors evaluate the Ethereum ecosystem.

First, it is the native currency of the network. Because Ethereum is the platform of choice for many valuable projects, Ether has become a powerful transaction currency in the Ethereum ecosystem.

According to the report, Ethereum holders are motivated to invest by:One, Ethereum’s potential as a store of value is evolving; two, Ethereum’s status as a digital currency provides the basis for transactions on its network。

Arthur Cheong, founder of DeFinance Capital and portfolio manager of a DeFi encryption fund, said in a statement on CoinDesk, "I think that boldly pioneering investment institutions will explore Ethereum and Defi after studying Bitcoin."

According to data, some investment institutions such as Coinbase and Gemini are incredibly bullish on Ethereum. In addition, there are more and more large investors who are looking for different decentralized financing spaces.

However, Deniss Vinokourou, a digital asset investment manager, believes that "not everyone is satisfied with the risks associated with DeFi that still exist, but the rapid growth of active projects in Ethereum supports capital appreciation."

The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.

The original text comes from ambcrypto, compiled by Blockchain Knight, the English copyright belongs to the original author, please contact the compiler for Chinese reprint.