That crypto sell-off earlier this year will seem like a minor tremor compared to the shaker headed this way, according a new report released Wednesday.
Investment bank GP Bullhound predicts a “heavy correction” will obliterate cryptos by some 90% within a year, leaving few survivors. Clearly, there’s some fat to be trimmed, considering there’s more than 1,000 coins on the market.
“While this correction will be critical to cutting through the hype, its lack of impact on financial institutions will create new phenomena that we have never seen in any previous bubble burst,” wrote Sebastian Markowsky, the lead author of the report. “Nonetheless, once this ‘crypto winter’ passes, the growth dynamics for the precious few survivors will be unprecedented.”
And therein lies the good news for the Ethereum faithful, according to this section of the 45-page report:
“People will become more cautious towards second generation protocols. Aspirational upstarts such as Dfinity, RChain, Cardano and Tezos will have to do much more than simply technically outperform to win market share. They will, however, keep the pressure on Ethereum to implement long overdue changes. Ethereum will keep its position as the clear leader and become the most valuable cryptocurrency by market cap.”
Ethereum has a long way to go if it wants to catch bitcoin. At last check, bitcoin BTCUSD, +0.73% was trading at $9,141.61, which puts it at $155.5 billion in market cap. Ethereum ETHUSD, +6.14% is in second place a $67.4 billion.
Bullhound, however, isn’t the only one bullish on Ethereum.
DeVere Group founder and CEO Nigel Green sees a potential fourfold rally. “The price of Ethereum... could hit $2,500 by the end of 2018 with a further increase by 2019 and 2020,” he told MarketWatch in an email....