The cryptocurrency platform COINBASE has released its annual report. He says institutional investors continue to favor Bitcoin (BTC), but Ether (ETH) has also appeared in their portfolios in 2020.
Institutional investors are turning more to Ethereum (ETH) assets. On the one hand, price performance, which was significant in 2020. From January to December, ETH thus increased by + 487%, while BTC posted an increase of + 321%, as show in this table :
On the other, the special status of Ether. According to Coinbase, institutional investors see strong growth potential in ETH in terms of its status as a store of value. In addition, they see cryptocurrency as a "digital commodity", which is necessary to make transactions work on the network. Ethereum’s entire architecture is proof of its strength for institutions, according to Coinbase.
Coinbase also notes that this new craze is based on the growth potential of decentralized finance (DeFi), which would be "one of the most important areas of development for the Ethereum network", according to institutional investors.
Coinbase expects the network to "crystallize more in the years to come" as institutions understand the interest of Ethereum and its ETH asset. This influx could then push the price of ETH to new highs, and narrow the gap with BTC.
