New Delhi (CoinChapter.com) — It seems nothing can keep the crypto fever down. Just a week after the May 19 market crash, cryptocurrencies are showing signs of rallying. A leaked report from Goldman Sachs has added fuel to the upward trend. The report asserts Ethereum will be the crypto of choice in the future.
Nick Spanos, the co-founder of ZAP Protocol, agrees with the report. He even speculated that ETH is set to reclaim the $3,000 mark very soon.
Bitcoin’s prices fell by nearly 50%. From an ATH of $64,865 per bitcoin in April 2021, the price went downhill to $29,461. Though BTC started recovering almost immediately, the journey back up has been precarious. The flagship crypto touched the $43,000 mark on May 19 itself before falling back again. It crossed the $40,000 mark today as well. At the time of writing, BTC was trading at $38466.
Bitcoin’s fall led the way to crypto market fall as well, as other cryptocurrencies fell too. Ethereum prices followed BTC’s trend during the crash. From its May 12 ATH of $4,383.499, ETH fell 57.02% to reach $1,884.178 on May 19. There was a further decline to $1,722.105 before the coin rallied with other altcoins on Monday. At the time of writing, Ethereum was trading at $2,699.
What The Report Says
The report by Goldman Sachs has given Ethereum fans plenty to be happy about.
As per the analysts at the reputed investment firm, “Ether has a high chance of overtaking bitcoin as the dominant digital store of value.” It gave the higher number of ether transactions as proof of this. The report was shared on Twitter. Ethereum, ranked second with a market cap of $313 billion, was also compared to Amazon and Microsoft. With most DeFi applications built using Ethereum blockchain, and increased use of Ether in NFT purchases, the value of ETH will only increase.
Ethereum has increased by 1830% since May 26, 2020, when considering its recent ATH. In a similar comparison, bitcoin has increased by 544.04%. These trends clearly support the sentiments shared in the report.
What Experts Say
Spanos said that the leaked Goldman Sachs report would give investors an impetus to stack up on the decentralized finance-focused blockchain network.
This is contributing to the continuous accumulation to help the coin regain balance after its massive correction. The coin is underpriced at the current price of $2,859.70 compared to its ATH above $4,300. I believe an immediate target for the buyers is to regain the $3,000 price mark while striving to chart a new territory above the ATH in the mid to long term.”
Before the crash, Ethereum was rallying strongly, charting new ATHs consistently. With the shift to proof-of-stake in Ethereum 2.0, demand has increased for this asset. Various other factors also came together to drive up ETH.