The Bitcoin price is creeping up to USD 40,000 again, while Ethereum is receiving tailwind from Goldman Sachs. The market update.
After last week’s sharp correction, the crypto market is showing further signs of recovery. At the time of going to press, the crypto key currency Bitcoin shows a daily plus of around 8.5 percent and is approaching the USD 40,000 mark again. The 24-hour balance is even more positive for the Altcoins around Ethereum, most of which can boast growth in the double-digit percentage range.
Goldman Sachs: Ethereum is the better store of value
Of course, the altcoins also have to make up more ground on average than Bitcoin. Because while Bitcoin had to give up around 13 percent in a 7-day comparison, the top 10 Altcoins (excluding stablecoins) are no less than 22 percent away from the previous week’s level across the board. At the time of writing, Ethereum (ETH) came off pretty lightly on a weekly basis. The number 1 smart contract platform prints a 7-day minus of 22.7 percent. ETH recently got a tailwind from Goldman Sachs among others. A leaked report from the major US bank is currently circulating in excerpts on social networks. Goldman Sachs is expressly bullish about the future of Ethereum. The focus is on Ethereum’s dominant role in the field of decentralized finance (DeFi). Due to its diverse application possibilities, Ethereum even has the potential to surpass Bitcoin as a store of value:
Given the importance of real-world uses in determining the store of value, ether has a high chance of overtaking Bitcoin as the dominant store of value,
it says in the Goldman Sachs report on Ethereum, which has been through social networks since May 23 ghosts. The argument that Bitcoin is an excellent store of value, primarily due to its supplies capped at 21 million units, falls short for the authors of the report.
A main argument for Bitcoin as [Wertspeicher] is its limited offer. But demand, not scarcity, drives the success of stores of value.
Even the first mover advantage, which Bitcoin is the first crypto currency to have, is no guarantee of the future success of BTC. At this point, Goldman Sachs makes comparisons to the competition among Internet platforms:
If [eine Plattform] if it fails to adapt to changing user needs or technological advances of the competition, it could lose its dominant position. Think of Myspace and Facebook, Netscape and Internet Explorer or Yahoo and Google,
it continues in the report.
Ether course on the rise
It seems reasonable that the recent rise in Ether is related to the leaked accolade from Goldman Sachs. At least there is a temporal correlation between the spread of the leaked document and the Ethereum rally.
However, since the ether rally is taking place against the background of an altcoin sector that is generally regaining its strength, a clear causal relationship to the Goldman-Sachs leak cannot be unequivocally attested. The comparatively strong daily increases of 35 and 25 percent respectively at Uniswap and Matic indicate, however, that the Ethereum ecosystem in particular continues to be in high demand.