Mike McGlone, Bloomberg commodity strategist, believes Ethereum (ETH) is poised to transform financial technology, and predicts rallying prices.
Backed by The Fact Dollar-pledge Run on Ethereum Network
As McGlone explains in a new segment for BNN Bloomberg, Ethereum (ETH) can sustain its value because dollar-pegged stablecoins depend on Ethereum’s network.
“[Ethereum] is basically doing to the world what Netflix did to Blockbuster. It’s revolutionizing fintech and things like that. The key thing about Ethereum is that it’s making possible the most widely traded cryptos on the planet [which] are tokenized versions of the dollar,” he said.
“Basically, the dollar is the most widely traded crypto. It trades more than Ethereum and Bitcoin together. And that’s because Ethereum tokens are making that possible,” added him.
Expecting ETH to start Outperforming Bitcoin
He expects ETH’s price to start trending upward against Bitcoin (BTC) due to shrinking supply and increasing demand.
In McGlone’s view, an increase in the price of ETH is inevitable when the supply to demand ratio is favorable.
“That trend of Ethereum still outperforming Bitcoin remains intact so it’s been hovering around this good support around $1,000, good resistance at about $2,000, but what it did this year was somewhat revolutionary,” he stressed.
“It switched to a proof-of-[stake] platform which means virtually no consumption of energy in the midst of an energy crisis. Wow, that’s kind of win-win, so you’re doing well there. The key thing that I look at from a commodity standpoint is: ‘What’s going on with supply and demand?,” he further explained.
Additionally, he explained that Supply is going down and heading lower, while Demand and Adoption are going up, so unless something changes in those trends, he expects prices to rise.
“I look at price, it’s relatively too cold. It should go back up and continue to outperform Bitcoin. It has been outperforming things like the Nasdaq over time and what’s significant is that it’s been doing it with incrementally lower volatility. What does that mean? It’s migrating into the mainstream with maturation,” he said.