Ethereum would be a good long -term investment, it suggests an analyst

The performance that Ethher (ETH) has had, the cryptocurrency of the Ethereum Network, in recent weeks shows that this digital asset is a good long -term investment option, according to Mike Fay, a financial analyst.

Fay argues that ETH, which has had a 100% increase in 3 months, does not show signs of being an “irrational bubble” and considers that The increase in cryptocurrency has been organic.

“Daily active addresses and monthly transactions have had a positive evolution in the last year. In June, Ethereum generated USD 39.1 million in monthly commissions, overcoming for the first time from December to Solana,” said the analyst.

In this graph provided by the firm Artemis, the performance of the commissions in Solana and Ethereum in the last year is appreciated:

He also recalled that Ethereum leads as the network with the highest monthly volume of transfers with Stablecoins. In June, more than USD 1 billion in stable cryptocurrency transfers for the fourth consecutive month, overcoming Solana, Base and Tron in 3 of the last 4 months.

As for asset token, says Fay, Ethereum clearly dominates. Although it has little participation in the tokenized shares market (with a capitalization of USD 427 million), it leads widely in tokenized treasures.

The total capitalization of Ethereum in Tokenized Treasures is valued at USD 7,500 million. To this is added a 77% dominance of Ethereum in that sector, as well as the permanence of this network as the main receiver of the Blackrock Digital Liquidity Fund, the world’s largest asset manager.

“Personally, I think we are still in early stages of asset token,” said Mike Fay.

For him, despite the risks, “Investing long term in ETH can be beneficial”. But all if the tokenization of assets continues to gain ground globally, if the network continues to dominate in the stablecoins and tokenized treasures sector, if there is a favorable regulation for digital assets and if it remains the home of protocols defi as Aave and Uniswap, in their opinion.

In addition, he believes that, if ETH manages to capture even more to the market of tokenized shares, especially with the support of firms such as Blackrock, its potential will be expanded.

Eth returns to the upward race

Fay’s analysis, where he sees ETH as an active long -standing potential, occurs in a context in which this active He had bullish behavior again.

As cryptootics reported, Ethereum accumulation addresses are in historical maximums. In addition, at the technical level, the price of cryptocurrency formed a golden cross, which is A configuration that usually anticipates upward rebounds in the short term.

It is added that there is a trend of companies that They opened their own Eth treasuresemulating those of Bitcoin (BTC), since they consider that this cryptocurrency has a good potential for growth and appreciation.

In fact, there have been companies such as BIT Digital, originally dedicated to Bitcoin mining, which moved away from the BTC road and decided to directly and openly expose Ethereum.

On the other hand, the ETFs of ETH began to have an important influence on the price of cryptocurrency. For example, on July 10 the asset exceeded the USD 3,000, as can be seen in the following graph. This was driven by massive institutional capital to these financial products, as reported by cryptootics.

Bitcoin, surpassed by ETH as a long -term investment?

Now, is Mark Fay’s vision enough, as well as the organic growth that ETH has had in recent weeks, so that this cryptocurrency exceeds Bitcoin as a long -term investment asset?

If you look retrospective, the answer would be no. And, when comparing the historical yields of BTC and ETH, there is a clear superiority by the currency created by Satoshi Nakamoto. In figures, BTC has had a yield of 2,383% since 2017 until now. Well above the 671% that Ether has had in the same period.

In this tradingview graph, such superiority of BTC (orange line) on ETH (green line) is better appreciated:

The above suggests that, always, Bitcoin has been an extremely superior asset to cryptocurrenciesin terms of performance (which is what it usually imports when investing in the long term). This is because its trend is bullish for its foundations.

And while it is true that ETH has also had notable performances, this has been, in large part, to follow Bitcoin’s movements.

The Venezuelan economist specializing in digital assets, Aaron Olmos, explained to cryptonotics that Bitcoin’s limited supply, 21 million currencies, It allows this digital asset to be a better investment than ETH in the long term. It is a characteristic with which the Ethereum protocol does not count and that promotes that BTC’s trend is upward due to a lower supply and greater demand, he said.

“The scheduled scarcity means that in the long -term Bitcoin is always more profitable than Eth. In Ether the amount of currencies that are needed to continue feeding the intelligent contracts are generated, so that they continue to function under the figure of the gas. In the short term, the price of ETH is in USD 2,800, and Bitcoin arrived a few hours ago at USD 118,000. And those growth peaks will always be present and this will always be present and this will always be present. attractive Bitcoin on the long -term portfolio instead of ETH ”.

Aaron Olmos, economist specialized in digital assets.

The preferential feeling by Bitcoin on ETH as a long -term investment also looms on the field of investors. For example, Ricardo Salinas Pliego, one of the most recognized Mexican billionaires in the world, suggested last week to investors “selling their houses and buying Bitcoin”, because for him, BTC is the “only effective way” so that people can protect themselves in the long term of the impoverishment of inflation and the manipulation of money.

Another who considers that BTC is its own asset to protect the future is the financial advisor Ric Edelman, who recommended an allocation of up to 40% in Bitcoin in investment portfolios, because he considers that BTC is a “wonderful way to improve modern statistics of portfolio theory”.

Although everything is possible in the cryptocurrency market, Bitcoin preference as a long -term investment asset is more than palpable among market actors. It will be time and market performance that defines whether, finally, ETH has what is necessary to be more profitable than BTC.