The second-largest cryptocurrency by market cap, ether (ETH), could experience a phenomenal sevenfold surge thanks to decentralized finance (DeFi) applications, Bloomberg reports, citing Fundstrat Global Advisors' strategist David Grider. The strategist notes that the ecosystem's progress with the development of Ethereum 2.0 will also play a significant role in price formation.
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In a report, Grider wrote that ETH represents "the best risk/reward investment play in crypto" as "blockchain computing may be the future of the cloud." However, the risks associated with network update failure or a bear market trend could take the wind out of ether's sails. The timeline of such a parabolic growth remains unknown.
Ether even surpassed bitcoin (EXANTE: Bitcoin) in terms of a year's payback (climbed more than fivefold in 2020). As of press time, ether is trading at $1,302 (-8.11%). Recently, iHodl reported that ETH managed to set a new all-time high at the $1,400 mark on Bitstamp after the $1,300 barrier was exceeded on January 10, 2021.
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