A current Bloomberg Intelligence report released by Mike McGlone, Senior Commodity Strategist, provides a bullish thesis for Ethereum vis-à-vis the existing macro environment. The Russia-Ukraine dispute, prospective interest rates hikes, and uncertainty surround the markets, however McGlone believes BTC, and ETH might triumph.
Related Reading|How Vitalik Buterin Will Use $100M In SHIB To Combat COVID-19
The report declares Ethereum has actually won a benefit over standard properties. Particularly, McGlone compares ETH’s cost efficiency versus the Nasdaq 100 which might continue to fall back the cryptocurrency if the Russia-Ukraine conflict extends.
The specialist claims Ethereum’s rally has been supported by a boom in adoption for non-fungible tokens (NFTs), and decentralized finance (DeFi) procedures. In the digital space, this network has actually also supported the release of U.S. dollars in the type of stablecoin, a digital property pegged to the value of the currency. McGlone said:
Around $176 billion on March 2, the market cap of the top 6 crypto dollars noted on Coinmarketcap is up about 5x from the start of 2021. We see little to stop market cap from reaching the trillions.
As stablecoin boost, their market cap, and adoption levels, ETH’s price must do the same. As seen listed below, there is an obvious correlation between the marketplace of stablecoins and the rise in ETH’s cost.