Ether, the second-largest cryptocurrency, could climb more than seven times to $ 10,500 after reaching a record this week, according to Fundstrat Global Councilors LLC.
Strategist David Grider’s prediction is based in part on the popularity of the related Ethereum blockchain for so-called decentralized finance applications. Ethereum has also made progress towards a network upgrade that would allow it to process a similar number of transactions with Mastercard Inc. and Visa Inc.
Ether is “the best risk / reward investment play in crypto,” Grider wrote in a note on Tuesday, adding that “blockchain computing could be the future of the cloud.” Risks include obstacles for upgrading the network or crypto bear market, he said.
Decentralized finance, or DeFi, allows people to do things like borrow or borrow money without the need for traditional intermediaries such as banks. Many DeFi applications run on the Ethereum blockchain.
Ether rose more than five times last year compared to the fourfold in the price of Bitcoin in the midst of a polarizing crypto boom. Supporters believe digital coins are maturing as an asset class, while detractors say they continue to be prone to rampant speculation and volatility.
Ether was trading at around $ 1,357 at 8:50 am in London, down from Tuesday’s record of nearly $ 1,440.