While the global cryptocurrency market flashes green again after a difficult period for most digital assets, a new report has singled out Ethereum (ETH) as having the potential to become an asset that will merit attention from large international investors.
Announced for September 2022, the long-anticipated Merge update is set to act as an event catalyst possibly transforming Ethereum into ‘a global institutional-grade asset,’ as per the Bloomberg Intelligence report titled ‘Booms, Busts and Bitcoin’ published on August 3.
As the Merge, which will mark Ethereum’s transition into a Proof-of-Stake (PoS) network, approaches, Bloomberg’s fundamental dashboard has demonstrated a strong recovery of the Ethereum ecosystem after its peak from May 21, “indicating that the asset could be mispriced,” the report stated.
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Outshining Bitcoin in multiple areas
According to the report, Ethereum has outperformed in several key adoption metrics that have a high correlation with price, including active users, non-zero balance addresses, and transactions, “in absolute terms to the last bear market and relative to Bitcoin.”
Indeed, the analysis has found that Ethereum’s “non-zero balance addresses are all-time highs (3-year 100% percentile)” and are “almost double that of the Bitcoin network.” What’s more, the number of Ethereum transactions has stayed strong year-on-year, losing only 7% in transfer volumes regardless of the 29% price drop.
At the same time, Ethereum has also outperformed Bitcoin in terms of active addresses, which are 113% higher than three years ago, despite being “flat year-on-year (+5%).” By comparison, Bitcoin was down 30% during this period.
Meanwhile, enterprise-level crypto market data analytics platform Kaiko found that Ethereum’s market share of trade volume in July achieved 50% parity with Bitcoin’s for the first time in 2022, due to strong inflows in spot and derivative markets.
ETH price analysis
As things stand, Ethereum currently trades at $1,660, which is a 5.05% increase in the last 24 hours, as well as an improvement of 11.56% across the week.
ETH’s market capitalization at press time was $202.3 billion, maintaining its position as the second-largest cryptocurrency by this indicator, according to data Finbold retrieved from CoinMarketCap on August 3.
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