Millionaire crypto hedge fund founder Rahul Rai expects ether (ETH) will eclipse Bitcoin (BTC) in terms of market valuation by the middle of 2022.
Rai asserted ether has a very high possibility of topping bitcoin. “I wouldn’t be surprised if it happened inside the cycle,” Rai said in an interview with Markets Insider.
A sequence of events spurred Ether’s ascent, highlighting the expanding momentum in the digital market beyond standalone cryptocurrencies.
After CME Group, the world’s largest derivatives market, announced it would debut micro ether futures in early December, the Ethereum network’s native token touched new highs above $4,600 this week.
The most valuable crypto
Rai, who sold his crypto hedge fund Gamma Point Capital for $35 million earlier this year, believes the Ethereum network’s versatility will be a major draw for both investors and developers.
With a market capitalization of over $1 trillion, bitcoin is the most valuable cryptocurrency, but ether is closely trailing behind with a market value of $535 billion, which means it shouldn’t be long when it unseats the “king of crypto.”
Bitcoin accounted for about 67% of the whole crypto market two years ago, but it now only accounts for roughly 45%. Ether’s market share has climbed from 8.5% to roughly 20% in the meantime.
“Ethereum is attempting to propel the rails of all the world’s finance in the future, and that is a much larger market, if it does succeed,” Rai told Insider.
Bitcoin seen to grow bigger
Although Rai said it is quite a challenge to predict when Ethereum’s cycle will end, his take for the crypto is around the middle of next year.
Bitcoin, according to the 24-year-old millionaire, is accelerating at an unfathomable rate. Last month, he said, the crypto is just getting started, and with lots of room to grow.
Meanwhile, JPMorgan Chase & Co., a major US bank, has put its faith in Ethereum, the top smart contract platform. It even deems it a “better bet” this market cycle than bitcoin.
JPMorgan analysts believe Ethereum has the potential to be a better long-term piece of investment if investors become more concerned about environmental issues and other related matters.
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