Fidelity Digital Assets: Ethereum Will Overtake Bitcoin

Fidelity Digital Assets


  • The institutional investor-oriented platform maintains a positive stance on Ethereum.
  •  The firm indicates that the upcoming EIP-1153 update and the 15% increase in active Ethereum validators could contribute to further potential.
  •  According to a recent survey, close to 46% of Americans expect Ethereum to eventually surpass Bitcoin in terms of market capitalization.

Ethereum has already posted more than 50% growth year-to-date, but Fidelity Digital Assets remains bullish on the top altcoin for the long term.

Why does Fidelity like Ethereum?

The crypto platform that targets institutional investors has a positive view on Ether mainly because its burn rate now exceeds the issuance rate.

Since “the Merger”net supply has decreased by more than 700,000 coins , according to the recent Q2 2023 Signals Report released by the company.

Fidelity is also bullish on the 15% increase in active Ethereum validators in Q2. The hype surrounding the EIP-1153 upgrade, which promises lower costs and increased efficiency, will help unlock further upside potential in ETH, the firm added.

“New Directions Momentum” was another reason cited for the long-term positive view on Ether.

Could ETH ever be bigger than BTC?

On the other hand, a recent CryptoVantage survey suggested that close to 46% of Americans expect Ether to eventually surpass Bitcoin in market capitalization. The aforementioned study included the participation of 1,000 Americans who have had exposure to cryptocurrencies as an investment in the last five years.

The latest data from Coinshares was also positive. In a report released over the weekend, the asset manager confirmed that Ethereum remains the largest holding in investors’ portfolios, although it has underperformed Bitcoin this year.

It should be noted that ETH could benefit as well if the US Federal Reserve signals a change of direction. This is because looser monetary policy tends to boost interest in risky assets. 

However, Ethereum has been experiencing a downward trend in recent sessions, pending the central bank’s announcement on Wednesday.