Ethereum is Feature-Rich, and Main Driver is DeFi: Bank of America Report
A Bank of America report recently said Bitcoin is highly sensitive to USD appreciation, currently basking in the FED's accommodative monetary environment. However, what investors should be closely tracking is ETH's performance. Ethereum, in their view, is more than a cryptocurrency but a feature-rich platform whose core is driven by DeFi—an innovation in finance and smart contracting.
Bitcoin is unlikely to be dethroned in the near future. But that doesn't mean investors should bet against other projects, especially Ethereum; that's more than a cryptocurrency but an evolving, smart contracting platform. The sheer growth of DeFi and its role in propping ETH prices is especially a factor to closely monitor. According to the BoA, the main reason for Bitcoin investment is not diversification but a quest for capital gains. In less than three months, the BTC price has more than tripled, attracting a whole range of diverse public companies and HNWI.
Impact on ETH Price:
Bullish. DeFi's growth is capped because of Ethereum's scalability challenges. Nonetheless, continuous development and scaling efforts could, in the months ahead, see ETH and DeFi prices rally, confirming BoA's forecasts.
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