The second-largest cryptocurrency, Ethereum (ETH), has been showing its teeth since the beginning of this year. Despite the fact that the price is now relatively low due to the big crypto crash of a while ago, the future of ethereum looks bright.
Among other things, the long-awaited major update is on the doorstep. This update should fix some of the major flaws of the Ethereum network. For many people, including Cardano (ADA) founder Charles Hoskinson, Ethereum is fundamentally superior to bitcoin (BTC).
Crypto analyst Lark Davis is also full of praise for Ethereum. According to him, the cryptocurrency is set to explode in the coming years.
To substantiate this, Davis makes the comparison with the large online payment company PayPal. According to Davis, this comparison fits well and can be used to say a few things about the future of ethereum.
Davis says PayPal processed a total of about $936 billion in transactions last year. Ethereum goes double and straight over this. In the first quarter of 2021 alone, the Ethereum network processed nearly $1.5 trillion in on-chain transactions. Even though Ethereum’s market capitalization is much smaller than PayPal’s, the network shows that it is capable of more.
Ethereum is ‘future proof’
According to Davis, PayPal simply cannot keep up with the growth of the crypto markets. According to him, it therefore comes as no surprise that PayPal is also going to get involved in the world of crypto. Davis argues that the company has no choice if they want to remain relevant going forward.
“In the first quarter alone, Ethereum has a trading volume that is 50% higher than PayPal’s for a full year. Insane, it is therefore not surprising that PayPal sells bitcoin and ethereum to their customers, because they will be forgotten if they do not.”
Davis is unmistakable in his analysis. Ethereum is severely undervalued compared to PayPal. The future of the network therefore also looks good, according to him. Add to this the fact that major updates are coming and the overall picture suggests different than the current price.