Major institutional investors are diversifying their capital between Ether and Bitcoin as a store of value. Both the cryptocurrency of the Ethereum network and the DeFi ecosystem will be before them.

More and more institutional investors are buying Ether (ETH), which they view as a store of value. The cryptocurrency of the Ethereum network and the second most important in the market is gaining historical momentum towards its appreciation.

In recent days, the price of this digital currency reached a new all-time high. For this reason, it has become an opportunity for large investors and a new option to store value in the market. The second-largest cryptocurrency recently reached a price of USD 1,439 per unit. The current price of Ether is very close to USD 1,300, which is still a considerably high price.

Institutional Investors View Ether as a Store of Value

Bitcoin’s recent pullback may be one reason why investors view Ethereum as a store of value. The pioneering cryptocurrency dropped from around USD 42,000 to USD 31,000 in a very short time. This situation led many to seek alternatives to invest their capital within the cryptocurrency system itself.

Cryptocurrency exchange company Coinbase says in its annual report that they have observed a growing number of purchases of Ether. In other words, a greater number of institutional investors are taking positions in this digital currency, taking advantage of its significant returns. Another very relevant factor is that most of those investors have already opened positions in Bitcoin.

In this way, the level of trust that exists in this type of asset market encourages bettors to try different cryptocurrencies. On previous occasions, investors in the crypto environment have turned to other more traditional assets due to the weakness of Bitcoin.

In short, according to the digital gold narrative, this other cryptocurrency shares the monopoly of Bitcoin. For that reason, large investors seek Ether, together with Bitcoin, given that they view the former as an easily accessible option.

Decentralized Finance also Plays Its Role

Another factor that could be contributing to boost Ether, following this rally and growing adoption, is Decentralized Finance (DeFi). Cryptocurrency experts such as Arthur Cheong of DeFiance Capital recently explained that the most daring investors are looking for something besides Bitcoin.

Cheong believes that, after seeing Bitcoin, more adventurous institutions are exploring Ethereum and DeFi. This would validate the thesis that Bitcoin is the “Internet of money”, while investors could consider Ethereum the “Internet of value”.

The multiple options that DeFi offers in terms of finance, as well as the ease of access to them, lead this to happen. Unlike the traditional financial system, which poses multiple obstacles, operating in DeFi simply requires access to the Internet.

Once investors have entered Ether, they will find themselves immersed in a sea of great return opportunities. Apart from the native Ethereum currency, the ecosystem of Decentralized Finance will be before them. It is only a matter of time for the second cryptocurrency on the market to gain more prominence among expert investors.

By Willmen Blanco

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