© Reuters
Investing.com – In his 2023 crypto outlook released earlier this week, Bernstein looked at the case of the , the second-largest cryptocurrency in the market by capitalization, highlighting the resilience of the cryptocurrency in 2022 and highlighting the possibility that ETH will one day surpass the .
“Ethereum has remained the most resilient asset in the bear market,” the analysts pointed out, believing that “this is because the brutal bear market has tested its competitors enough that the market has returned to Ethereum as the most resilient blockchain standard. resilient “.
Bernstein’s memo also points out that “Ethereum is also the most complete suite,” including “multiple Layer 2 ecosystems enabling scaling, and a supported Layer 2 blockchain app-economy.” by the Ethereum staking economy”.
They thus judged that Ethereum “answers all the main criticisms leveled against blockchains”, explaining that “utility is provided by applications, scaling is provided by layers 2 and 1. he blockchain economy is driven by a sustainable business model, which returns intrinsic value to token holders.”
Against this backdrop, the firm’s analysts predict “this Ethereum strength will continue, with growth in the application economy driven by Layer 2-focused ecosystems such as Polygon and Arbitrum.”
Analysts also questioned the possibility of Ethereum overtaking Bitcoin in terms of capitalization, noting that “it seems theoretically likely”, but believes that a possible “monetary pivot in the global economy” would benefit Bitcoin more. , which boasts “longest history” and “greatest institutional access,” with “more liquidity than any other crypto asset.”
Bernstein thus concluded that “in theory” Ethereum should overtake Bitcoin “very soon”, adding: “but in practice, who knows? “.