Ethereum Will Outperform Bitcoin in Next Bull Market, Says Analyst

Published 21/12/2023, 20:10
©  Reuters Ethereum Will Outperform Bitcoin in Next Bull Market, Says Analyst
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  • Lark Davis predicts Ether will outperform Bitcoin in the next bull market.
  • Davis said Ether’s price will be buoyed by a number of factors, including staked Ether.
  • The analyst said an Ethereum spot ETF could be more compelling for investors than a Bitcoin ETF.

Influencer and cryptocurrency analyst Lark Davis expressed his optimism that Ether (ETH), the second-largest digital asset by market cap, will outperform Bitcoin (BTC) in the anticipated bull market.

Davis made this statement in a recent interview where he argued that Ethereum’s performance will be buoyed by a number of factors. “If you were to invest $10,000 in Bitcoin and $10,000 in Ethereum, Ethereum, I believe, will give you a higher gain by the end of the cycle,” Davis remarked.

While noting the significance of an ETF approval and BTC Halving for Bitcoin, Davis said Ethereum has more catalysts to drive higher performance. Firstly, the analyst claimed that Ethereum has “ultrasound money” and “massive deflation”.

Davis further pointed to a significant rise in the amount of Ether being staked. Davis estimates that about 28 million ETH are locked up in staking contracts with over a two-year wait period.

Alongside the “massive supply lock” created by ETH staking, the analyst observed that Ethereum continues to see more demand. According to Davis, most of this demand comes from Ethereum Layer-2 networks, a dynamic which has significantly shrunk the Ether balance on exchanges.

Meanwhile, Davis argued that an Ether spot ETF could be more compelling for investors than a Bitcoin ETF. Making a comparison between the two assets, the analyst said Bitcoin ETF is like holding gold while Ethereum ETF is more like having Apple stock. At present, ETH is exchanging hands at $2,125 apiece, data from CoinMarketCap reveals. Despite a recent soar in altcoin prices, Ethereum’s price continues to lag. The token has shed 2.8% of its value in the past seven days. Conversely, BNB and Solana added 4.67% and 20.80% to their prices, respectively.

The post Ethereum Will Outperform Bitcoin in Next Bull Market, Says Analyst appeared first on Coin Edition.

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