The CEO is much bullish on the transition to Ethereum 2.0 Proof-of-Stake (PoS) blockchain along with the rise of the DeFi market.
The Bitcoin (BTC) vs Ethereum (ETH) debate gets intense. This year, a large number of institutional players have extended their support for Ethereum. With the Ethereum hardfork just two days away, Pantera Capital CEO Dan Morehead predicts that ETH will outpace BTC as the largest cryptocurrency.
On Monday, August 2, speaking to the Reuters Global Markets Forum, Morehead said Ethereum has more potential than Bitcoin. The Pantera CEO also stated that the upcoming Ethereum Improvement Proposal (EIP) 1559 upgrade will help the digital token to trade more like a fixed asset.
The EIP-1559 implementation will bring a major change to Ethereum’s existing fee structure. It will significantly reduce the inflation rate of the Ethereum network making transactions more cost-effective. Thus, the EIP-1559 implementation will make the Ethereum blockchain network deflationary with time.
“You’ll see a transition of people who want to store wealth, doing it in Ether rather than just Bitcoin,” Morehead said.
Pantera Capital Is Betting on Ethereum 2.0
Like many other market analysts, Morehead is betting on the transition to the Ethereum 2.0 blockchain network. The move to the PoS blockchain network will significantly Ether’s energy consumption in mining.
“Ethereum’s move to proof-of-stake later this year or early 2022 will result in ethereum’s supply becoming deflationary and will be equivalent to multiple bitcoin halvings [cuts to bitcoin’s supply of new tokens]in terms of supply restriction. This will make it a better store of value than bitcoin in addition to all the utility it provides that bitcoin does not have”.
Pantera CEO Dan Morehead is also betting on the future of the DeFi market. He added that Ethereum’s wide implementation in the DeFi application will help it outgrow Bitcoin.
However, despite his bullishness on Ethereum, Morehead is not critical of Bitcoin. He expects the Bitcoin price to touch $80,000-$90,000 by the end of this year. He further expects bitcoin to cross $120,000 levels in a timeframe of one year. With the mainstream adoption of Bitcoin (BTC), its price can go as high as $700,000 in the next decade.
Institutional Players Backing Ether (ETH)
Apart from Morehead, Wall street veteran Mike Novogratz also recently said that Ether could become “the biggest cryptocurrency one day”.
A recent report from Coinbase also showed that Ether has outperformed every other asset class during the first half of 2021. It also wrote about the rising institutional interest in Ethereum. The report states:
“Many of our largest institutional clients, including hedge funds, endowments, and corporates, increased or added first-time exposure to ETH in H1, believing the asset has long-term staying power tantamount to BTC’s while playing a differentiated role in their portfolios.”
Read more crypto news on our website.