Just as Ethereum (ETH) is unraveling both in dollar and Bitcoin (BTC) terms, Weiss Ratings came up with a bullish message for ETH, at least in the medium-to longer-term prognosis. Recently, Weiss Ratings tweeted:
The tweet holds no prognosis for the price of BTC or ETH. It also does not clarify whether market share here equals the number of users, or the share of market capitalization, or something else,as there is no known way to measure the spread of crypto coins. Based on data from Bitinfocharts, the number of active addresses for both the Bitcoin and Ethereum networks are actually not so far apart. Currently, Bitcoin there are more than 500,000 active addresses, while active users of Ethereum have dwindled lately, to less than 300,000.
It must be noted that the prediction by Weiss Ratings is for the next five years. In the short term, there are plenty of Ethereum skeptics who see the network as losing value and not managing to carry a “killer app”. At the same time, Bitcoin maximalists see Ethereum as redundant, stating that the Bitcoin network is enough to perform distributed computation and tokenize assets.
However, Ethereum has been the most popular, most familiar and accessible platform for tokenization, and with its scheduled updates to the network, may remain an important part of the crypto ecosystem.
In the short term, the drop of ETH prices to under $200 created further skepticism for the coin. The network’s hash rate fell to the lowest levels in three months, while Bitcoin’s hashrate remains near its peak.
Most comments on the Weiss ratings tweet were therefore skeptical of the success of Ethereum. For years, there were hopes and expectations of Ethereum’s network displacing Bitcoin, but the expectations have not materialized. Instead of reaching prices of $5,000, or even a “flippening” with Bitcoin’s market capitalization, ETH market prices have remained depressed.
ETH traded at $209.37 around 11:00 UTC on Wednesday, while BTC prices inched up to $6,348.37.
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