Ethereum has long been the second-largest cryptocurrency by market capitalization behind only bitcoin. But the gap is sizable. As of late October 17, bitcoin’s market cap was nearly five times that of its smaller competitor.
For investors considering ether or ETFs such as the Invesco Galaxy Ethereum ETF (QETH), it’s worth noting that they’re not necessarily betting on crypto’s “second fiddle.” Rather, ether has significant long-term growth potential. If that potential is realized, it could validate patience exercised with QETH. The Invesco ETF has notched a solid year-to-date showing. But if some experts’ views on the digital currency are validated, much more could be in store.
Consider the outlook of BitMine Immersion (BMNR) Chairman Tom Lee. Perhaps his views on ether should be taken with a grain of salt. That’s because BitMine is an ether Treasury entity. That makes it a dedicated buyer of the cryptocurrency. Still, his perspective is noteworthy to ether and QETH investors.
History Lesson Could Confirm Ether Potency
Lee’s ether bullishness is partially rooted in market history. In a recent interview, he said that market parallels from the 1970s when the U.S. abandoned the gold standard are relevant when evaluating ether today. Back then, equities became the more desirable asset after the U.S. dropped the gold standard. Lee believes the same thing could happen between bitcoin and ether, with the latter “flipping” the former.
“Dollar dominance by the end of that period went from 27% in GDP terms but to 57% of central bank reserves, and 80% of financial [transactions … Dollar]dominance is going to be the opportunity of Ethereum,” he shared.
The BitMine boss acknowledged his theory is still a work in progress. He expects the digital currency to reach $10,000 to $12,000 by the end of this year. The high end of that range is more than triple where ether traded late October 17. That implies that if Lee is correct, QETH could have substantial upside ahead of it.
When it comes to ether devotion, Lee walks the walk. That’s highlighted by the fact that BitMine recently expanded its holdings of the digital currency by about $417 million, and that followed other buying in previous months.
“BitMine’s recent accumulation comes on the heels of an earlier record purchase. During a major crypto market dip, the company spent over $827m acquiring ETH, a timing that captured demand from panic sellers amid a weekend that saw $19b in leveraged positions liquidated,” according to Cryptonews.
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