Crypto hedge fund manager Rahul Rai believes that before the middle of next year, Ethereum will surpass Bitcoin in terms of market cap.
The Ethereum network’s native token hit record highs above $4,600 this week after CME Group announced it would launch a new ETH-based product in early December.
Bitcoin is the number one cryptocurrency with a market capitalization of over $1 trillion, while Ethereum ranks second with a market capitalization of $535 billion.
Rahul Rai, 24, became a millionaire in May after BlockTower Capital bought the fund he co-founded. According to the young crypto millionaire, this may not be the case for very long. “I think there is a really good opportunity for Ethereum to surpass Bitcoin,” the famous crypto millionaire told Insider. I wouldn’t be surprised if this happens in a cycle.” said and added:
“It is very difficult to predict when this cycle will end. My guess is the middle of next year.”
Two years ago, Bitcoin made up almost 67% of the entire crypto market, but its share has dropped to 45%. Meanwhile, Ethereum’s market share increased from 8.5% to around 20%. This year, Bitcoin reached record highs of close to $70,000, supported by investor portfolios as a means to diversify investments and hedge against inflation. Rai commented:
“Bitcoin is a store of value, it is digital gold. So its market cap will most likely be somewhere around gold – maybe even bigger, because it has some better properties than gold. But that is roughly the metric you would use to limit market size.”
According to CompaniesMarketCap data, the market value of gold is currently around $11 trillion.
Rai, who sold crypto hedge fund Gamma Point Capital for $35 million this year, said the versatility of the Ethereum network will be the main attraction for developers and investors alike.
Ethereum is a layer one network that allows payments, lending, trading and staking. It provides peer-to-peer activity without a broker or bank as an intermediary. Unlike the Bitcoin network, its blockchain is programmable, meaning it can run other applications such as smart contracts, NFTs, and even metadata storage. According to Rai, Ethereum is trying to strengthen the rails of all global finance:
“If it succeeds and the thesis materialises, then the market cap will capture trillions of dollars in global activity, which is a much larger market than Bitcoin has ever been in.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.