Soon the market cap of Ethereum could exceed that of Bitcoin

Economist Raoul Pal believes that the market capitalisation of Ethereum may exceed that of Bitcoin

According to Raoul Pal, Ethereum will have a significantly higher market capitalisation than Bitcoin in the next decade. A former hedge fund manager, Raoul Pal is the co-founder and CEO of the Real Vision group. He is also an investment strategist for Global Macro Investor.

According to Coinmarketcap, Ethereum has Bitcoin Loophole a current market capital of $62 billion. This represents 18% of Bitcoin’s market capitalization, which is over $333 billion at the time of writing. Taking Pal’s forecast into account, then Ethereum has a long way to go, as its valuation is only a fifth of that of Bitcoin.

Through a series of tweets, Pal has highlighted several reasons to support his bold statement. He made a comparison between the sizes of cryptomyces and traditional markets such as derivatives.

Ethereum stood out as an optimist, with the possibility that he could have an entire economy working on him in the future.

„My view is that BTC is a perfect collateral layer, but ETH may be larger in terms of market capitalization in 10 years for the reasons above,“ he wrote.

It is hard to think that Ethereum can really outperform Bitcoin, but that does not mean that the chances are zero. Surprises and general plans are not unprecedented in crypt space. Bitcoin is in a correction phase at the moment, after rising to new highs at the end of November. It is currently trading at $17,850.

Ethereum, which is trading at $545, is equally volatile. The Ethereum network, however, has an advantage over the Bitcoin blockchain. The network allows the tokenization of stablecoin assets and even non-functional game tokens. This makes it a crucial element, even in the future financial scenario.

There is also the case of emerging decentralised finance that has devastated the financial landscape. DeFi is still largely based on Ethereum, despite the entry of growing blockchains like Binance Smart Chain and Polkadot. None of these upcoming blockchain platforms are close to dethroning Ethereum. The advancement of DeFi means the growth of Ethereum.