Cathie Wood-led Ark Investment Management says that the market capitalization of Ethereum (CRYPTO: ETH) could exceed $20 trillion in the next ten years.
What Happened: In a research report titled “Big Ideas 2022,” ARK analyst Frank Downing and research associate Nishita Jain noted that Ethereum emerged as the predominant smart-contracts platform for decentralized finance (DeFi) and non-fungible tokens (NFTs) last year.
The analysts believe that, while Ethereum is still a “work in progress,” it could displace several traditional financial services and ether could compete as global money.
Ethereum will be a big beneficiary as more financial services move on-chain and decentralized networks grab market share from existing financial intermediaries, the analysts said in the report.
Etherereum has the potential to capture a portion of the $123 trillion in global money supply since it is the preferred collateral in DeFi and the unit of account in NFT marketplaces, the analysts noted.
See Also: How To Buy Ethereum (ETH)
Why It Matters: Ethereum, the world’s second-largest cryptocurrency by market capitalization, outperformed Bitcoin in terms of gains last year following the rise in popularity of NFTs.
At press time, Ether’s market cap stood at $296 billion.
In December, Cathie Wood said that Ethereum’s position as a “venue for DeFi and NFTs” makes it even more undervalued than the apex cryptocurrency Bitcoin (CRYPTO: BTC). She added that Bitcoin is relatively more established in the monetary system than Ethereum.
Wood is bullish on cryptocurrency and has been piling up shares in cryptocurrency-related stocks such as Coinbase Global Inc. (NASDAQ:COIN), Block Inc. (NYSE:SQ) and Robinhood Markets Inc. (NASDAQ:HOOD).
Price Action: Ethereum is up 3.9% during the past 24 hours, trading at $2,500.89 at press time.
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