Ethereum appeared in 2015, that is, much later than the formation of the first BTC block. In terms of capitalization, it also lags far behind bitcoin ($800 billion to $381 billion). But some services on the Internet show that the interest of users in the ether is much higher than in bitcoin. Why is Ethereum popular with crypto investors? Will the rate of the crypt grow further and will it overtake bitcoin?

Why Ethereum is interesting for crypto investors

 

In terms of long-term investment prospects, Ethereum looks more attractive than its competitor. Despite the fact that initially the release of coins was not limited, after the London fork, the coin burning mechanism began to work effectively. This limited the rate of issuance, and also contributed to the strengthening of the coin.

The internal inflation of the coin is several times lower than that of the bitcoin. Therefore, Ether is of interest to large investors as a tool for risk diversification. Many see Ether as a way to save capital from the increasing inflation of the traditional fiat currency.

In addition, the popularity and growth of the course is also due to an increase in interest in the field of non-fungible tokens and decentralized finance. Since Ethereum is turning into a deflationary tool, it can be used as a store of value.

Increased popularity among investors and users is also facilitated by media coverage. Recently, the broadcast has given many reasons to mention itself on the pages of media platforms:

  • development and popularity of the decentralized finance market;
  • capitalization growth and possible flipping in the foreseeable future;
  • the transition to Ethereum 2.0 and the consequences of this phenomenon;
  • NFTs and their use for profit.

All this attracts not only institutional, but also small investors. Demand increases and, as a result, leads to an appreciation in relation to other financial instruments.

The main indicator of the reliability of a crypt is its capitalization. This indicator reached its maximum in November 2021, when the rate broke through another resistance line. As of January 2022, the crypto is trading at $3.2k per coin. And its capitalization is 381.1 billion dollars.

Goldman Sachs believes that ETH is ideally suited to become the most popular store of value in the digital world. Analysts at 8848 Invest and EXMO recommend investing in Ethereum for a period of 3 to 5 years with the possibility of high profits