With the recent rate halving and spot exchange traded funds (ETFs) driving demand, bitcoin will be in the spotlight for most of 2024. However, according to Katie Wood of Arc Invest, Ethereum (ETH) could catch up with bitcoin and provide investors with significant returns in the coming years.
Speaking at an investor conference organized by Arc Invest, Ms. Wood spoke about #BTC , noting that the project could reach a market capitalization of $20 trillion by 2032. The current supply of #BTC is around 120 million tokens. Reaching a market capitalization of $20 trillion means that the price of a single token will exceed $166,000. Moreover, this figure could be even higher as Ethereum Fund continues to burn tokens.
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At a price of $166,000, 6 ETH is worth about $1 million. Currently, 6 ETH is worth approximately $20,000 USD.
By comparison, the total market capitalization of the S&P 500 is about US$40 trillion. In addition, the world's gold reserves are valued at around 16 trillion USD. Ethereum could theoretically reach a market capitalization of US$20 trillion, but this is likely not going to happen anytime soon.
However, in justifying this exaggerated claim, Wood is mostly talking about mass adoption. Ethereum essentially serves as a means to directly interact with a frightening number of decentralized financial applications (DeFi). These projects can offer a range of benefits, from loans and credit to storing medical records. By 2024, however, #BTC will be used primarily for smaller financial platforms. According to Wood, if Ethereum starts creating favorable usage scenarios for users, it could lead to a rise in popularity and, theoretically, a rise in the price of the token.
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Additionally, Wood will only cite the huge numbers to give investors hope for the future of ETH.
It is also important to keep in mind that Ms.
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