Hello, and welcome to this week's Overbit Insights. The first story in this week's edition is about the recent rise of Ethereum, the second-largest cryptocurrency by market cap. ETH is up approximately 40% month to date, while Bitcoin is down 5% during the same period.
Because of Ethereum's outperformance during this market cycle, many analysts predict that it could reach $10,000 in the next year. According to FundStrat, "We're maintaining our overweight Ethereum vs bitcoin recommendation from April 2020,"
The fund continued to state that "During the last market cycle, Ethereum broke this level and [had] as high as 80% of bitcoin's value, "and that "The crypto narrative is shifting from bitcoin to Ethereum and other segments like DeFi (decentralized finance) and Web 3.0 apps."
The main driver of ETH's growth is that it is being billed as the new layer for new financial applications, which has grown significantly in scale over the last year as we’ve seen with a plethora of new DeFi applications.
As we move on to our next story of the week, the famous Silicon Valley based venture firm Andreessen Horowitz (a16z) is putting together a third crypto venture fund, according to a report in the Financial Times on Friday.
This new fund has the potential to more than double a16z's previous $515 million fund for crypto investments. The announcement comes in the wake of Coinbase's public listing, in which a16z was handsomely rewarded for its early support of the crypto exchange.
A16z isn’t new to crypto at all, as they were one of the first Coinbase investors and on April 14, the day the stock debuted on Nasdaq, A16z cashed out $449.2 million in COIN stock on behalf of its investors.
With significant firms and funds increasing their bullish predictions and more money flowing into the space, it appears that crypto's long-term growth is here to stay.
That concludes this week's edition of Overbit Insights, and we hope to see you again next week.