Bitcoin (BTC), the largest cryptocurrency by market capitalization, gained the vast adoption of institutional investors in 2020, which is seen as the major reason why Bitcoin is currently rising significantly in the market.
According to a Messari analyst, Ryan Watkins, Ethereum (ETH), the second-largest digital currency by market cap will likely attract the same interest from institutional investors in the coming year.
Ethereum (ETH) Would Replicate Bitcoin’s Attraction In 2021
Bitcoin (BTC) has been outstanding across all performance levels in 2020. In terms of price, it seamlessly attained levels it struggled to reach in the past years.
Despite the price downturn of March 2020, which resulted in crashing to the $4,000 price level at the onset of the Covid-19 outbreak, it has risen to test the $28,000 mark for the first time since inception. At the time of writing, BTC is trading at $27,256.
A large part of this price upside trend could be attributed to the increase in money inflow from institutional investors.
Now, Ryan Watkins, Messari analyst, believes that in 2021, institutions will come after Ethereum, which could lead to a significant rise in price for ETH.
Watkins tweeted, “2021 prediction: In 2021 we begin seeing institutions buy ETH Once you accept that Bitcoin may be valuable, it opens your mind to the possibility that other cryptoassets may also be valuable. It’s a much easier jump from BTC to ETH from there.
“CME futures is the writing on the wall. They wouldn’t launch an ETH product if there wasn’t any demand for it.”
A few hours ago, the price of the digital token ETH surged to break above $700 resistance. The current trend in the market shows that ETH is capable of maintaining its stability above the resistance level.
At the time of filing this report, Ethereum (ETH) is trading at $733.94, with a 14.50% price increase in the last 24 hours.
Obviously, the Ethereum community members are expecting further developments of ETH 2.0 in 2021, following the launch of Beacon Chain a few weeks ago. The subsequent success of this popular upgrade is also seeing as a catalyst to boost the price of the cryptocurrency in the coming year.