Ether, the second largest cryptocurrency, could grow more than sevenfold to $ 10,500 after hitting a record this week, according to Fundstrat Global. Advisors LLC.
Strategist David Grider’s prediction is partly based on the popularity of the related Ethereum blockchain for so-called decentralized funding applications. Ethereum has also made strides towards a network upgrade that will allow it to process a similar number of transactions as Mastercard Inc. and Visa Inc.
Ether is “the best risk / reward investment game in crypto,” Grider wrote in a note on Tuesday, adding that “blockchain computing could be the future of the cloud.” Risks include setbacks to the network upgrade or a crypto bear market, he said.
Decentralized Financing, or DeFi, allows people to do things like borrow or borrow money without the need for traditional middlemen such as banks. Many DeFi applications run on the Ethereum blockchain.
Ether rose more than fivefold last year compared to the price of Bitcoin quadrupling in the midst of a polarizing crypto boom. Proponents believe digital currencies are maturing as an asset class, while opponents say they remain prone to rampant speculation and high volatility.
Ether was trading at around $ 1,357 in London at 8:40 a.m., down from Tuesday’s record of nearly $ 1,440.