Jurrien Timmer, Global Macro Director of Fidelity Investments, argues that the leading altcoin Ethereum is undervalued compared to Bitcoin, the flagship of the crypto world.
Jurrien Timmer's analysis is based on the rapid growth that the Ethereum network has experienced. The executive also argues that Ethereum has outperformed Bitcoin.
Ethereum has outperformed Bitcoin this year and was able to make a huge 260% difference against the leading cryptocurrency BTC.
The Ethereum ecosystem has attracted attention, especially due to the NFT craze and decentralized finance (DeFi). Bitcoin has also suffered from growing concerns over carbon emissions and environmental factors. Last month, JPMorgan analyst Nikolaos Panigirtzoglou said that Ethereum's move to proof-of-stake makes ETH a better investment than the leading cryptocurrency.
Timmer continues to view Bitcoin as a superior store of value due to the scarcity of investors. BTC, which has a disinflationary nature, has benefited from the near-zero interest rates that started at the beginning of the pandemic and the uncontrolled printing of money by the Fed. While Ethereum is experiencing its first week of deflation after the major EIP-1599 update recently, there are still persistent concerns about high transaction fees.
According to crypto analytics firm Santiment, giant whales are buying massive amounts of Ethereum (ETH) as crypto markets move sideways. Santiment notes on Twitter that the 10 largest over-the-counter Ethereum addresses currently hold 24.78 million worth of Ethereum (ETH), which is currently worth more than $96.33 billion. According to the crypto analytics firm, this figure is close to an all-time high for the ten largest over-the-counter ETH addresses, which set a record 26.63 million ETH in June 2016.
Santiment also notes that the ten largest Ethereum addresses on exchanges have a cumulative 3.82 million ETH, which is the “lowest level since the big exits.” The firm explains that these two metrics can be bullish indicators in the long run.
“This means that there is more long-term hodler and trader confidence in the long-term value of Ethereum, the higher the ratio, the better. It's a good sign in the long run, a neutral sign in the short run."